Money
What if the key to your future was not just about earning money, but about understanding how to make it work for you? The truth is, financial
independence starts with the choices you make today—especially the
decisions about what you truly need versus what you want. Learning to prioritize your needs over wants is the first step toward making your money work for you.
-
The Power of Money
Money isn’t just about buying things—it’s about earning your freedom and making choices. Imagine two teens:
one starts saving money at an early age, while the other spends whatever they earn without saving:
Teen 1, let us call her Sarah, Sarah decides to put aside a little bit of her allowance every month, even when it’s just a small amount. Over the years, her savings grow. By the time she’s 18, Sarah would have saved enough money to help pay for college and buy a car. Because she saved early on, Sarah has the freedom to make choices according to her needs and wants in a way that aligns with her goals.
Teen 2, on the other hand, spends all her money on things like new clothes, gadgets, and dining out. By the time teen 2 turns 18, they will be in debt and struggle to pay for things like school supplies and personal expenses. They will feel limited by their financial situation, just because they did not have the right mindset and tools to start early on.
This example shows that money is more than just a means to buy things—it is a tool that gives you the freedom to make choices which will then reflect in your future. The sooner you start saving, you will have more options and will carry on the discipline of managing your money wisely through out your life.
2. The Importance of Money
Money is a tool that helps you secure basic needs and open doors to
opportunities. It's not the end goal, but a way to achieving financial freedom. When you understand how to use money wisely, you can unlock the potential to pursue passions, take risks, and live on your own terms.
3. Needs vs. Wants
​Think about your last purchase. Was it something you really needed, or do you think you could have done without it? This is the kind of question you have to ask yourself before every purchase. Ask yourself: Is this a need, something that ‘I’ cannot live without – or is it a want – a luxury item that I can live without for a while.
​Needs are the necessities we need for survival—things like food, clothing, and shelter. Wants, on the other hand, are the things that make our lives more enjoyable, but are not necessary for survival. Before you buy something, pause and think: Is this really essential for me right now, or could I wait until I have more savings to make this purchase?
3. Needs vs. Wants
​Think about your last purchase. Was it something you really needed, or do you think you could have done without it? This is the kind of question you have to ask yourself before every purchase. Ask yourself: Is this a need, something that ‘I’ cannot live without – or is it a want – a luxury item that I can live without for a while.
​Needs are the necessities we need for survival—things like food, clothing, and shelter. Wants, on the other hand, are the things that make our lives more enjoyable, but are not necessary for survival. Before you buy something, pause and think: Is this really essential for me right now, or could I wait until I have more savings to make this purchase?
4. The Basics of Financial
Independence
​Financial independence isn’t about having millions—it’s about living well with what you have. It’s about working because you want to, not because you have to. Achieving financial independence means making smart decisions which will set you up for the life you want in the future.
4.1 Earning: Your journey starts with earning money, whether it’s an allowance or a salary. The more you earn, the more control you will have over your financial future. As a teenager, focus on building skills to increase your earning potential.
​
4.2 Investing: Make your money grow through investments. The earlier you start, the more your money will grow over time.
4.3 Saving: Set aside a little bit of your income for the future. Aim to save at least 20% of what you earn to create a financial cushion for emergencies or future expenses.
4.4 Spending: Be mindful of your spending and avoid using credit unnecessarily. Track where your
money goes and prioritize needs over wants to avoid unnecessary debt.
One of the most important things money can give you is freedom. The more you control how you spend and save, the more options you have for your future. Financial independence allows you to make decisions without worrying about how you will pay for them. It is about creating a stable foundation today, so that tomorrow, you can make choices that align with your values and goals.
5. Money Gives You Freedom
Financial independence allows you to make choices that align with your values-whether that is pursuing a passion, traveling, or starting a business. You can shape your future by making the right decisions about earning, spending, saving, and investing.
6. The Connection Between Money and Freedom