Wealth Creation Strategies for Teenagers

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Although "wealth" can have a negative connotation, it is an incredibly important financial concept. Wealth is simply your net worth - the total value of your assets minus your liabilities. Building your wealth allows you to become financially free. In other words, money is not a constraint in your life.

Here are 5 tips to building your net worth and pursuing financial independence as a teenager.

  1. Earn Some Money

Everyone has to start somewhere. Go out and find a quick job to earn a little cash. Mow a lawn, do some chores, or practice saving birthday money. Find an activity you love and see if you can earn some money doing it. These simple tasks can help you build an entrepreneurial mindset and begin teaching you the fundamentals of money management.

  1. Start Investing Early

Investing early is one of the greatest ways to set yourself up to create wealth, and it has never been easier to do so. On Bumper, you can begin investing before you turn 18 with just $1 and an account sponsor. By having your money work for you today, you are getting an experience that cannot be replicated in a book or classroom.

  1. Begin Building Credit

Beginning to build credit as a teenager might seem unnecessary, but it is far easier than it sounds. To start, you can become an authorized user on your parent’s credit card. An authorized user is simply an additional cardholder on someone else’s credit card account. As an authorized user, you will begin building credit based on your parent's transactions. However, if your parents have poor credit history, look at alternative options like Step, a VISA-card that helps you build credit before you turn 18.

  1. Set Short Term Goals

As a teenager, life changes fast. This is why it is important to set short-term goals each week or month. To start, you can try to earn $20 each week or reduce your spending by $10 for the month. Goals provide a challenge, give you focus, and increase your motivation to accomplish what you desire.

  1. Make Mistakes & Learn

In every new experience, failure is inevitable, especially as you begin to manage your money while investing or saving. However, each of these failures is a diamond in the rough. As you learn more and gain more experience, this diamond will begin to unveil itself. It also must be understood that learning never stops, which is why it is always important to continuously look for growth opportunities.

Please note that this article is for educational and informational purposes only. All screenshots are for illustrative purposes only. Equip Solutions LLC (Bumper) does not recommend any specific securities, investment strategies or provide investment advice. Investing and investment strategies involve risk, including loss of value and the loss of principal. Please consider your objectives before investing. Past performance does not guarantee future returns or results.