How to build good financial habits in teens

It is tempting to spend money once you start earning. You got the job and you are making money so why shouldn't you spend it as you like?

Well, you will see that it is hard work to earn an income so you should think wisely about how you spend it.

Follow these rules to stay on the right track:

- Make a spending plan for yourself.

- Set goals as to how much you want to spend and how much to save.

- Have a budget and use it to guide your spending.

- Resist the urge to spend all the money you earn on clothes, food, games, etc.

- Keep track of your money. Open a bank account and keep an eye on your statement to see how much you are spending each month.

- Don't be influenced by your friends. If they spend their money unwisely it doesn't mean you do the same.

- Never spend more than you earn. Debts can soon pile up when using a credit card and if you don't pay it back in a timely manner, usually within a month, then your credit score will be affected.