Why you should build good financial habits from a young age
Considering the current state of the economy, Bangladeshi youth must learn how to take care of their finances. Traditionally, a majority of the young population in Bangladesh rely on their parents to cater to their financial needs, whether it be by giving pocket money, providing tuition fees for their semesters or simply giving money to buy the latest gadgets. But with changing times, it is now up to the youth to take responsibility for their own lives (and pockets).
There are multiple benefits of picking up good financial habits from a young age. Let’s see how knowing how to manage your money will help you now and later down the line.
Knowing how to earn
This is probably the most important life skill that you should master. Regardless of which career you decide to eventually pursue, you will literally have to learn how to make money. This requires working long hours, juggling multiple tasks and most importantly, creating a balance in life. Many young people these days often provide tuition services, work as freelancers or work part-time in cafeterias and restaurants. Working to earn something at the end of the month can teach you the power of hard work and its rewards.
Good financial habits are not only about making money but also managing it. Once you start earning your own money, you tend to be much more vigilant in terms of where you spend it.
Cutting down unnecessary spending
Good financial habits are not only about making money but also managing it. Once you start earning your own money, you tend to be much more vigilant in terms of where you spend it. Thus, being finance savvy allows you to pinpoint certain areas where you are unnecessarily spending money and reframe your life accordingly. Maybe you really do not need that fancy coffee every day, maybe you can be just fine with using a less expensive phone. These are the things that you can learn by being money-wise.
Learning the power of perseverance
It’s easy to ask for a brand-new phone and then get it. But have you ever saved money for 6 months straight, stopped eating out and going on shopping sprees, all in the hope of buying the new laptop that you always wanted? That is the one perk of having good financial habits – that you understand what you can achieve if you save money and then eventually use it to buy or do something.
Mastering the basics of investing
There’s a saying that nobody becomes rich by earning and saving money. Instead, the secret to wealth lies in investing. So, once you start making money, chances are that you will begin to consider your possible investing options. Of course, you might not need to start investing in stocks and bonds right away, but you can surely take baby steps by investing in FDRs or Shonchoypotros. Such streams of investing and saving money for your rainy days can surely give you a head-start in becoming a responsible, financially-literate adult.
Saving for a rainy day
Having a good sense of your finances will also make you consider the worst-case scenarios in life. Say you face an accident, or maybe one of your relatives becomes very sick. Preparing in advance for such unforeseen circumstances can be key to leading a life with a considerably large safety net. You cannot change everything that happens to you, but you can definitely minimise the risk by taking adequate precautions.
Set long-term financial goals
Once you start making money, your vision towards life, in general, tends to unfold. You start thinking about what you want to achieve with your money down the line. For example, you might want to have your own apartment in 5 years. Or you might want to visit your dream destination in a year’s time. But how do achieve this? The solution lies in intricate financial planning. You need to start planning now in order to achieve what you want in 5 years. This requires saving a definite amount on a monthly basis, ensuring that you don’t touch the savings at any cost and plan everything according to your set vision. This is another benefit and a prime reason why you should be sensible about money, as it allows you to plan your long-term life and financial goals accordingly.