When students graduate from high school, they have no idea how to handle money. Since money management is important in adult life, students face problems in managing money in further studies and work.
Money is a tool for every person, especially to the teenagers who are going to start their journey to adult life. One of the major problems, is that when students graduating their schools, they are also starting to learn to be separate and using money on their own, so that leads to that money can be spent in many amounts and illiterate, as teenagers need to learn how to allocate money rather than spending it on useless resources. For instance, the average teenager spends, $2391 per year according to the “Taking Stock with Teen” research reports. Clothing accounts for 21% of Teen’s budget, which is highest in category. Food is 2nd most spending category which is 20% of their spending. So, that is the main sources where teenagers money go, but most of them are wasting it carelessly and excessively. Consequently, teenagers will run out of money for basics such food, transportation, and utility bills once they continue putting away money. These problems could be tackled by, if students begin to understand the importance of money distribution and literacy of their use, thereby starting to distribute their money first on basic expenses, and then on personal desires or entertainment, then their budget will not go so fast as it goes. However, this solution might be less possible, due to the fact that most of the grown-ups are making attempts on their desires and refuse to follow the rules as they call them, thereby fundamentally going against them.
Solution for this problem might be, that, first they have to understand how they come this money, if they are given by parents then at first try to find out the financial condition of the family and decide the balance of the family budget. Secondly, if the teenager has little pocket money, then give him the opportunity to earn the most honest way and understand how comes the money.
Finally, all the ways to becoming more financial literate can help teenagers to become conscious consumer of money, so that they won’t have problems in the future.