Teens, what have you learned about managing money?  If you live in the U.S., you probably haven't learned a whole lot about managing money.  In school, you're taught algebra, trigonometry, English, literature, history, science, and other subjects, but the educational system fails to teach you about managing money.  This is why the U.S. faces economic issues -- no one knows what they are doing!  Listen up because if you want to be a successful adult, you'd wise to learn about money today!

What you are not taught can ruin you

Teachers do the best they can.  The truth is most teachers do not know how to manage their own money.  This may sound crass, but it's true.  You are not taught about savings and checking accounts, real estate, T-bills, stocks and bonds, and other types of investments.  You are not taught to DIVERSIFY your money.  The good news is that you can learn HOW TO manage money now in order to have a successful future.

It's unfortunate that teens are not taught how to manage money.  Of course, it's a great business for credit card companies, banks, and other lending institutions because they charge outrageous interest rates which is how they make their money.  You can outsmart these companies by learning how to handle money.

Managing your money

Teens, the first rule of managing money is PAY YOURSELF before anyone else.  Pay yourself at least 10% of your income.  You can put the money into a FFA (financial freedom account).  This can be a savings or checking account or even a jar! 

*Second, set-up accounts for education (10%), long term savings spending (10%), necessities (55%), play (10%), and giving (5%).  Do this now and you'll be able to handle money as an adult

Third, learn about MULTIPLE and PASSIVE STREAMS of income.  For example, if you're a writer, you could sell books, cds, videos, write screenplays, ghostwrite, teach, and do other things to earn multiple streams or passive income.  Another example of passive income is network marketing which is nothing but sales.  You join a "team" (make sure you understand the rules of network marketing) and you earn money from selling and bringing in other people to the business.

*10% of income
*55% of income
*5% of income

Finally, forget about what your parents tell you about money.  It's not the root of all evil (the LOVE of money is the root of all evil) and you will not receive extra points if you live in poverty.  God, universe, or whatever name you use will not reward you for being poor -- it's a myth!

Unless your parents are financially set and know how to manage money, chances are they will pass bad habits onto you.  They don't mean to do this, they just don't know any better.  Your parents learned money habits from their parents and their parents learned money habits from their parents; it's a cyclical process.  You can be the one to break it forever!

Managing money is fun

Teens, managing money is fun.  Think of it as a game -- a high priced game.  Set goals for yourself and reward yourself when you accomplish your goals.  This is why the "play account" is important.  It's all right to treat yourself; no one says you must be a victim or martyr of circumstance.  It's o.k. to have fun!

The sooner you understand how to manage money, you can teach your friends and siblings to do the same.  It's up to you how early you want to get started on your finances; sooner is always better than later.  Go forth and prosper!