6 long term goals for teens to prepare for their future

Personal finance planning may not rank too highly on your to-do list as a teen. After all, you’re probably not planning to buy a house or retire anytime soon. 😉 Adulting can seem pretty far off into the future.  

However, developing financial literacy as a teen will make your adult life so much easier. In fact, one of the things young adults wish they learned about in their teen years is personal finance skills like managing money and budgeting! Here are a few financial long-term goals for teens looking toward a bright and sunny future. 

The importance of long-term planning

One of the easiest ways to build critical financial skills is by setting long-term goals. Aside from your academic goals, things like saving for your college experience or learning how to invest can help you prepare for your financial future and give you a sense of direction.

While long-term financial planning may seem a little less appealing than, say, your upcoming basketball game, it has significant impacts on your life. Putting in a little effort now will seriously benefit you when you take control of your finances.

The best long-term goals for teens

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So, what are a few of the best long-term financial goals for teenagers? Here are a few smart, achievable goals for students that can aid you in your personal growth mindset. 

1. Plan for higher education and avoid debt

A college degree is expensive. Tuition and fees, housing, food, books, and living expenses were an average of $36,436 in 2023 in the United States. While you may be lucky enough to have parents willing to pay for your higher education, or you might plan to take out student loans and get financial aid, you may need to chip in for some of your costs. 

Setting aside some funds for college can be a huge advantage when enrollment comes. Instead of relying entirely on your parent's financial help or taking out loans, you'll have a safety net to support you.

While it may be impossible to save all the funds for your higher education (after all, you probably can't work a full-time job and attend school, too), setting aside a small portion of your allowance or earnings can help. When it comes time to attend college, consider taking on a part-time job to fund your tuition and expenses. That way, you can decrease the potential burden of loans.

2. Strive for financial independence

Relying on the Bank of Mom or Dad can be convenient — but it’s not going to get you far in your own money journey. You can pave your own way by finding ways to earn money. If your parents are willing, they may pay you to do extra chores around the house. Or, you could earn money through a part-time job and use your earnings to pay for the extras you want — that new jacket you've been eyeing or a movie with friends, for example.

When you're financially independent, you don't have to rely entirely on others for help. You're able to meet your own needs by managing your money effectively. You won't need to depend on credit cards, loans, or other sources for funding. It's a major component of financial wellness.

3. Establish a savings routine

Building good savings habits when you're young is an excellent routine to get into. When you save a regular portion of your allowance or earnings, you'll make saving a normal part of your financial life. You can turn to your savings for major purchases, like your first car 🚗 or to help pay for something you're looking forward to, like a weekend trip. 

To start saving, look at your current financial situation. Do you have an allowance or earnings from a first job? Try putting a set amount every time you get paid into your savings account. So, let's say you earn $100 weekly from babysitting. You could keep $80 for your expenses and put $20 into monthly savings. That's 20% of your earnings going to savings, which can add up big-time in the future.

4. Build a strong credit history

Establishing good credit is a prereq to future financial security. Without a solid credit score, you'll find it challenging to achieve larger goals like qualifying for an apartment or getting a loan for a home 🏠 or a car. While you're probably not thinking about doing any of those things if you're still a high school student, it's a good idea to start preparing for them.

If you're eligible for a credit card and decide to take one out, you'll start building a credit history. Always be sure to pay the bill on time and, if possible, pay the full balance rather than the minimum payment. When you consistently make your payments on time, you’ll see your credit score reach for the (literal) stars. ⭐

5. Learn to budget and manage money

Budgeting is a core part of managing your personal finances. It defines how you'll spend and save the money you earn. With a well-defined budget, you'll find it easier to live within your means and avoid overspending.

To build a budget, tally up your regular earnings and typical costs. Then, determine how much you'd like to save each month. So, let's say you earn $500 monthly from your allowance and a part-time job. You pay for your own car insurance and gas ⛽ which run about $250 a month. You can set limits for clothes (maybe $50), dining out (another $50), and going out with friends ($100, because they're more important). Budget the remaining $50 to save for your future college expenses.

6. Invest wisely for growth

Investing can help you reach your goals faster than simply saving cash since your investments can gain value. 📈 While investing may seem a little complex, it's not hard to get started. 

Greenlight's app teaches you the basics of investing and gives you real-world opportunities to put your money in fractional shares and ETFs. You can decide on the investments you're interested in and how much to put in each company. Your parents will then need to approve your trades, and together, you can watch your investment portfolio grow.

Invest in your future with Greenlight

Greenlight is here to help you realize the benefits of goal-setting. Through our Level Up financial literacy game, you can watch bite-sized videos and play fun games that help cement the basics of personal finance. 

To start using Greenlight, sign up for an account today. Earn up to 5% on savings* and get a head start on a successful financial future. 

*Greenlight + Invest families can earn monthly rewards of 1% per annum, Greenlight Core and Greenlight Select families can earn 2% per annum, Greenlight Max families can earn 3% per annum, and Greenlight Infinity families can earn 5% per annum on an average daily savings balance of up to $5,000 per family. Only Greenlight Max and Infinity families can earn 1% cash back on spending monthly. To qualify, the Primary Account must be in Good Standing and have a verified ACH funding account. See Greenlight Terms of Service for details. Subject to change at any time.