May 29, 2022

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Top Six Financial Mistakes Youth Make

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 Top Six Financial Mistakes Youth Make

Most Youth strive to be financially independent. Some have plan to have a particular amount of money in there bank account at the end of a particular year but
do not succeed. I have a friend who told me that by the end of next year, she want to have a particular some of money in her bank account.

However, some youth are not financially responsible. They end up lavishing useful funds for unnecessary wants. Below are some tips of some financiual mistake yourh make. Knoiwing them will help you avoid them. The tips can also be applied by adult also.

  • Not making full use of Discount

Youths today do not know the full advantage of discount. Though the discount might be very small taking advantage of it can do you a lot good. Do not forget that a little drop of water makes a mighty ocean.

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Discount are given when you buy in large quantity. For example, in Nigeria, there are great discounts, if you buy a paint of rice than buying a derica of rice (paint and derica are used to measure food items like rice and beans in Nigeria).

  • Lack of Budget

Most youth do not have a budget of their income and expenditure. So they tend to spend money recklessly. Having a budget will help you organized your yourself and avoid uncontrol expenses.

  • No emergency fund

Some youth who do not have emergency funds end up having a difficulties when there is  emergency expenses.  In some cases, they ended up borrowing money at high rates for the purpose of dealing with them.

Having a emergency fund for such occurrences is a wise step and saves you a lot of money.

  • Wrong use of ATM
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ATM provides an easy way to get your money in the bank with ease. However, improper use of itcan lead you to ATM chargesby the bank. In Nigeria, for example, ATM charges are made when you withdraw more than three times a day with a withdrawelimit of N20,000 per withdrawer per day.

However, in such known circumstances, many youth will still withdraw more than three times a day in which the total withdrawer may not be up to N20,000 thereby incuring ATM charges.

  • Not having long-term goal

Long-term goal is a goal you want to acheive in the future. It can be attending a University in your country or in another country. It can also be building a house or saving a specific some of money.

Many youth fails to plan for a long term goal. In future time when they discover they need to acheive a goal, the fund will not be there to make it happen.

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Having a long-term goal makes you to plan your finances to achieve such goals when thed time is ripe for them.

  • Borrowing too much

Many youth have the habit of borrowing and this have make them to have too much debts on there head. Spending money on wants instead of needs have make many youths to borrow money they do not  need.

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