Choose wisely between your needs and wants

Grade 9 students in the Collective Voice program at Aden Bowman Collegiate share their lives and opinions through columns. Selected columns run each Monday in The Saskatoon StarPhoenix.

Money can be hard to manage. Being a teenager I realize I don’t have a lot of experience with it, but I do understand that it takes practice and self control.

Dealing with money is a big responsibility and how we use it affects our daily lives. It’s especially tricky when you need to choose between items you need and items you want.

I used to be very good at saving money. When I earned money babysitting or from allowances, I would put it in my bank account and didn’t think much of it. Coming into high school, my habits changed; the money I made, I spent quickly.

There’s a convenience store and fast food eateries across the street from the school. I have a sister who drives, so we can go wherever we want at any time (as long as we have money for gas). Having access to spending money means that I buy things I don’t need, but just want in that moment. I know a lot of my classmates experience the same thing.

The first time I realized money was more than just coins and paper was when I bought my first phone. I realized that I have to work hard for the money if I want to buy something. After seeing how empty my bank account was, I started to question if my phone was really worth it. Although it was really cool, it wasn’t a need and I could have made do for another year. From that point on, I’ve started thinking harder about why I am buying something before I buy it.

It’s important to be able to tell the difference between a need and a want. I know it’s easy to see something you want and immediately buy it. This habit is something I hope to be able to leave behind as money starts to play a more significant role in my life.

According to a survey done by the Organization for Economic Co-operation and Development (OECD) out of the 15 countries that participated, 22 per cent of the teens scored what the OECD considered to be a minimum threshold of financial knowledge. That’s about one in four teens who don’t have a clear understanding of the basics of financial literacy.

In 2007-08 Canada was in debt by $833 billion; that net debt had increased to $1.3 trillion in 2016-17. The combined ratio debt is about 67.5 per cent of the Canadian economy, which is about $37,476 for every person in Canada. A poll conducted by Ipsos found that the average Canadian owes $8,500 in consumer debt, excluding their mortgage.

There is good debt and bad debt. Good debt would be an investment that grows in value over time, such as a house mortgage. Bad debt is something that loses value like technology, clothes or shoes. Living without debt can be very difficult, but it’s important to be able to see the difference in good and bad investments.

It’s never too early to start learning about money. The earlier a person can grasp the importance of managing their finances, the easier it is for them to make good decisions.

Having time to think a purchase through is really important when it comes to spending money; the longer you wait, the more chance there is that you will change your mind and realize it’s not a necessity.

I hope that I gain the ability to make responsible decisions with my own money and feel comfortable to tell the difference between what I want and what I need so I don’t regret the decisions I make in the moment.