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Financial Literacy for Ages 14-18: Managing Your Personal Finances, Achieving a High Quality of Life, and Taking Responsibility

Being financially literate makes it possible for an individual to live a quality life. It's all about maximizing your income and savings and not putting yourself in a position where you stress out about money.

People who don't know how to manage their personal finances usually spend more than they earn. This leads to increasing debts as life progresses and, of course, increased anxiety and depression stemming from financial worries.

Key Money Basics Ages 14-18

Learning money management in high school will allow you to live independently as you enter the workforce or college and spend and save your money wisely throughout your entire life. Here are some financial literacy skills important for high school students.

Making wise decisions about money. Whether you want to move or buy a house one day, you need to know how to go about making those decisions. Money plays a crucial role when choosing what to do in such situations and many others.
Minimizing college costs. More students are going to college after high school, but college tuition and college debt keep increasing. Knowing how to manage your money and make smart decisions about college costs will minimize your cost to attend.
Maximizing income. You don't need to pursue high-profile careers to enjoy financial freedom, but you need to understand how to maximize your income when you embark on your career path.
Spending and budgeting. When young adults start earning money for the first time, they have the tendency to lose track of where their money goes, which causes them to be in the "red." Budgeting is a financial plan that allows individuals to know how much they are earning and spending so there is something leftover after your paycheck. Try this easy budgeting tool.
Saving and investing. It's important to form the habit of saving early on. In high school you should know how to develop a financial plan that includes setting your financial goals, identifying the steps to achieve them, and timeframe to reach them.
Banking. By high school you already know that banks offer various financial services, but you probably don't know how to use all of them to your benefit. High school students should know how to open a checking account, write checks, understand the responsibility of keeping a bank account, make a deposit, understand transaction fees and how to minimize them, and understand bank interest rates.
Using credit and credit cards wisely. In high school you are preparing yourself for responsible use of consumer credit, like credit cards. It's important to know the advantages and disadvantages of using credit. Also, know your rights and responsibilities when using credit and credit cards and how to build a solid credit history.
Applying for loans and acquiring assets. A major part of money management is knowing when to borrow money and why. Acquiring valuable assets, like a car or a house, is a good reason for applying for a loan, but it calls for a plan to repay the loan.
Fraud and Scams Prevention. Cyber fraud is growing faster among victims aged 20 and under than any other age group. Scams that target teens include everything from fake scholarships and contests to online shopping fraud and even extortion. Learn about the Top 5 Financial Scams Targeting Teens and learn how to protect yourself from becoming a victim.

Calculators

College Savings Calculator

Saving for your college education requires a long-term plan. The earlier you start your plan the better. Using this calculator to help develop or fine-tune your education savings plan.

(Source: DoD's Office of Financial Readiness)