Learning how to save money is important, whether you have a lot or a little. These tips will help you get started young.
Step 1. Start at the finish line
To begin, start at the end. Yes, that sounds weird, but you need to know what you’re aiming for before you get started. Are you saving for college? Maybe you want to buy a car. Be clear in your mind about your goal. Post a picture of it where you’ll see it every day to remind yourself what you’re saving for.
Step 2. Keep track of your spending
A lot of adults panic at this step, but it’s not hard. Begin keeping track of everything you buy in a notebook, adding up the total at the end of the week. You can also use an online budget app, like Mint.com, to keep track of your expenses and totals.
Step 3. Make a plan
To save successfully, your expenses should not be greater than the total amount you want to save each week. Let’s say you want to save $35 every month for college and your allowance is $15 a week. That means you’ll want to save $8.75 each week. But if you spend $10 every week on fast food or snacks, that’ll leave you with only $5 to put into savings. If you spend less than $6.25 (15 – 8.75) per week on snacks and put the rest in savings, you’ll make your monthly goal.
Fort Worth Community Credit Union has a young savers program to help you save early. Ask your parent to help you open an account and see how quickly your savings add up!