When you are Marsai Martin, there are more than just a few dollars in your bank account. Spending and saving are unquestionably a big part of being financially responsible, even for a teenager. Marsai Martin recently sat down with Margaret Anadu, the Global Head of Sustainability & Impact at Goldman Sachs, for an episode of In the Know: Money with Marsai Martin to talk how to spend money wisely. Take a look at what the pair had to say below.


Martin asks Anadu to weigh in on spending money to make money

“You have to spend money to make money,” and how it applies to everyday spending. “You can spend money in a way where it is 100% out the door,” Anadu begins. “Like if you buy a way too expensive dress that you’re never gonna wear. That’s not gonna pay back dividends. But if you’re investing in your education, or you realize in your community you’re gonna need a car to get to school or get to a job, that’s an investment that’s gonna make you money over time.”

Martin asks Anadu to weigh in on cash vs. credit cards

Frequently, when performing their own personal finance health check, many wonder whether they should be using cash or plastic. Anadu has some great advice.

“You never want to borrow for something that isn’t going to increase in value,” says Anadu. “So if you’re using a credit card to buy [a shirt], and that shirt is $20, and you’re using a credit card to buy it, it doesn’t cost you $20. It costs you $20 plus all of the interest on that credit card. And so that shirt, the second you buy it, it’s going down in value, so why are you letting it cost you more with that interest on that credit card?”

Martin asks Anadu what to do when cash isn’t an option

“I think there’s a difference between credit cards, where you’re really borrowing money, and just cards that are your debit card or it’s a card that’s actually just linked to cash you have in your bank account,” says Anadu. “So you can definitely use electronic forms of payment that are still just a way of using cash or the money that you have. Or a lot of people, for example, they’ll use credit cards because they love the points. But they’re paying off that credit card every single month in full so they’re not paying all that interest over time.”

Martin asks Anadu to give us all some solid spending advice

Anadu wisely states that spending is all about choices.

“You wanna make sure that you’re spending your money in a way that’s investing in your future, that’s gonna somehow make you more money or quite frankly, make you happy,” she explains. “So I think with every single choice, with every single dollar, just say, ‘Is this what I wanna be spending my money on? Is this who I wanna be spending my money with? Is this how I wanna be spending my money?’ Because it’s an important choice. I just think it’s really important for teens to start with that healthy relationship with money from early on and I think that’s just a way to be more thoughtful about it.”

Do you have any sage advice of your own? Sound-off and comment below. We want to hear from you.

Tiffany Silva

Tiffany Silva

Writer and Editor

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