Richmond Hill teen, a personal finance advocate

Armita Hosseini is an 11th grade student at Alexander Mackenzie High School in Richmond Hill. In 2020, she published the book “Roadmap to Financial Education: An Introduction to Personal Finance for Teens.” June 14, 2021

In 2020, high school student Armita Hosseini published the book “Financial Literacy Roadmap: An Introduction to Personal Finance for Teens”.

His interest in personal finance was sparked by reading the book “Secrets of the Millionaire Mind” by T. Harv Eker in eighth grade.

“I felt that I had not only gained knowledge about money management, but also how to make better decisions and think critically about my daily life. This made me realize how, beyond knowledge, financial education is incredibly reliant on psychological habits, which is why it is so important to learn and develop these habits early on,” she said. While learning about finances, she learned that many financial education resources are not tailored for teenagers. But she saw a demand for it, which is what prompted her to take action and write and publish the book herself.

Hosseini, who will be entering grade 12 at Richmond Hill’s Alexander MacKenzie High School, also runs an economic and financial education organization called EmpowerEcon that hosts virtual events.

Here are Armita Hosseini’s five tips every teen should know about personal finance:

1) Delayed gratification is vital.

The idea of ​​delayed gratification is the ability to give up short-term desires for greater long-term gains. In personal finance, this largely means having self-control when it comes to spending money.

2) Don’t underestimate the value of starting early.

When teens think about topics like investing and saving for retirement, they see them as concepts far in the future and distant from their current selves. However, in personal finance, it’s important to be a long-term thinker and consider what you can do now that will set you up for success for decades to come. Because of compound interest, someone who starts saving for retirement at age 18 will be able to have more when they retire with fewer contributions compared to someone who starts at age 30 and makes more contributions.

3) Make saving for an emergency fund a mandatory financial goal.

This is crucial because you never know what will happen in your life that will require your attention and money. If you don’t have money saved for such situations, you may need to take on debt that could otherwise be avoided, such as credit card debt, to pay for basic needs like food and rent. Since the interest rates on credit card debt are incredibly high, it can take years to pay off. It is often recommended that you save six to 12 months’ worth of your necessary expenses as part of an emergency fund.

4) Don’t leave your money in the bank, invest.

Banks and financial institutions often pay incredibly low interest rates on money deposited in savings accounts, and instead use a large portion of that money to lend to borrowers in the form of loans, such as mortgages, which they then They charge much higher interest. rates in. Therefore, to receive the best results, it’s a good idea to put your money in investments like mutual funds and index funds, which offer much higher rates of return.

5) Know where your money is going

An essential aspect of personal finance is keeping track of your finances through budgeting. If you’re not sure where and how you’re spending your money, you may think you’re spending a lot each month when you’re not, or you may think you’re not spending much in a certain area when you really are. . By breaking down your finances into different categories and reviewing them weekly, you can have a clear understanding of how financially responsible you’re being and where you need to make adjustments.

For more information on Hosseini’s book, go to Amazon. for more about her organization to go Youtube.

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