I’m Only 15, but I Have a Plan to Reach Financial Independence – Business Insider

Insider's experts choose the best products and services to help make smart decisions with your money (heres how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

Ever since I was young, my parents always included my five siblings and me in money discussions. They taught us how to save our money and how to spend it wisely.

We are all homeschooled, and we have a personal finance class in our curriculum each year. Because of that, I started learning about money from a young age.

At first, I didn't like our personal finance lessons because I was always an anxious kid. The thought of not having enough money for necessities made me feel awful. After learning more about good and bad ways to use your money, though, I no longer feel anxious about money (mostly).

One thing that's helped me feel less anxious is getting a job. Another thing is a book that my family and I are reading called "First to a Million." It's aimed at teenagers, and it talks about how to become financially independent, which means that you have enough money saved so you no longer have to work.

This was a revelation to me. I like my job, but I definitely don't want to do it, or any other mind-numbing job, for the rest of my life. This is why I'm starting to prepare for my retirement now.

There are two types of interest good interest and bad interest. Bad interest is the kind of interest that you pay to someone when you get a mortgage or have a credit card balance. Good interest is the kind that someone pays you, like when you have money in a bank account. I've learned that you should take advantage of good interest and avoid bad interest.

Here's an example of the power of compound interest:

Starting early makes an astounding difference.

I know one of the biggest advantages I have right now is my youth. Since I am so young, I don't have very many (or any) expenses. So now is the time for me to start learning what I can, saving money, investing wisely and preparing for my future.

Starting to learn about finance when you're young is one of the smartest things that you can do. Take advantage of the time you have now, because before you know it, you might have more commitments like a full-time job, a family, student loans, and a mortgage.

Even though I earn some money from my job, I don't buy the latest fashions or go out to eat all the time. Instead, each time I get a paycheck, I sit down with my dad and go through it. We put half in savings, and give 10% in tithing to our church, and whatever's left I put in my spending account. I save a lot, but that doesn't mean I never spend my money.

Instead, I choose to spend it on things that are really important to me. I've bought Animal Crossing for our family's Nintendo Switch, a weighted stuffed animal, and a few smaller things, too. But it's just more important to me to save most of the money I make.

Another thing I'm doing to prepare for life is building my credit score. I don't have my own credit card, but I'm an authorized user on my parents' cards so I can build a good credit history. I also know not to spend more money than I can afford to pay.

Saving for the future is really important, and it's best to start yesterday, but it's good to start now. Take advantage of the resources you have. Use the magic of compound interest, make your money work for you, and you'll be able to have a financially stable life and a comfortable retirement.

Read more:

I'm Only 15, but I Have a Plan to Reach Financial Independence - Business Insider