Introduction
Chances are, you already have a lot on your mind. You have to keep up with your school work, extra activities that quickly take up most of your free time, and relationships with your friends and family that fill up the rest of your schedule. Do you really need the extra burden of learning about something that doesn’t even seem to be a big deal right now? Why should you bother worrying about the ins and outs of personal finance when you already have enough to worry about?
Besides, isn’t finance boring?
There are a few reasons why you should learn how to handle your money now. You’re in a great position to learn because, as a student, you are accustomed to learning new things and haven’t already developed bad financial habits. Also, as a young adult, you’ve likely begun to crave independence. Managing money on your own is an excellent first step toward becoming independent from your parents. First and foremost, however, you need to know that effectively handling your money is a talent that will serve you well for the rest of your life. No matter where you go in life — whether you become an artist, a doctor, an undercover agent for the Secret Service, or a stay-at-home parent — money will always come into play in your daily decisions. Will you have enough money to own the car you want to drive? Will you be able to take vacations with your family? Will you be able to cover day-to-day expenses? If you can master the art of basic personal finance in your teenage years, you will have all the tools you need to effectively manage your money now and far into the future.
Personal finance does not have to be boring. This book will not drone on about annuity investments or the foreign exchange market. Instead, you will learn the basics so you don’t have to add “money” to the long list of things you already have to worry about. After all, if you can figure this stuff out now, you already have a leg up on plenty of adults who fumble around with money for their entire lives.
As a teenager, you have the distinct advantage of having time on your side. You can do amazing things with relatively small amounts of money if you start now. Whether you bought this book on your own, or an adult gave it to you as a gift hoping you will take an interest in your financial future, prepare to have fun — while also learning how to take control of your money.
Are you asking yourself how money could possibly be interesting and fun? Once you realize that understanding your finances isn’t really so difficult, and that you can easily manage your own finances doing the things you probably already do (spending time online or toying with your cell phone), maybe you will decide it is worth it to learn more about managing your money.
The organization of the book is fairly simple. The personal finance concepts get a bit more difficult as you read through the book — with the basics up front and specifics on moving out on your own toward the end. Case studies from finance professionals and real-life stories from teens and college students are presented throughout. A helpful glossary of finance-related terms is included at the end of the book.
Are you ready to learn everything you need to know about personal finance? Let’s get started.