Anna Lech How to Save Money. A Guide for Teenagers.

If you are a teenager, you know it is difficult to save money. There are so many things you would like to have! How to stop spending money and start saving? The good news is that putting asideputting aside [put aside]putting aside the sum of money you need is possible. No one says it’s easy but a good plan and determination really help.

How to start saving?

1. Know how much you need

Do you want to have the latest mobile phone? Or maybe you would love to see your favourite band at a live concert? It doesn’t really matter if your dream is big or small. You have to find out exactlyexactlyexactly how you can get the best dealthe best dealthe best deal and how much money you need. Write the amountamountamount of money down and add about 5% in case the price risesrises [rise]rises before you are ready for the purchasepurchasepurchase. Ask your parents to see if they can help you. This will also show them you are responsible and serious about your goalgoalgoal.

2. Do your maths

Check how much savingssavingssavings you have already set asideset asideset aside. In this way you will know how much you have to put awayput awayput away each week to meet your goalmeet your goalmeet your goal. If the numbers are difficult to achieveachieveachieve, give yourself more time or try to find a way to increaseincreaseincrease your “incomeincomeincome”. You may do some extra chores at home like cleaning out the garage or washing your parents’ car. Selling something you don’t need is always a good idea. Sell your old bike or a board game you don’t like anymore. If you set a reasonablereasonablereasonable price, they will probably find a new owner soon. There are websites you can use to sell used things. You should remember, however, that most of them charge a commissioncommissioncommission for the sale. This may be even up to 10% of the transaction so be careful.

3. Take a photo of your dream purchase

Take a photo of your goal and keep it on your phone. It may sound silly, but it really helps to stay within the budgetstay within the budgetstay within the budget when you are tempted to buy something on impulsebuy something on impulsebuy something on impulse. Resigning from impulse buys does not mean you are stingystingystingy. Nowadays all of us have too many things. For example, in an average American householdhouseholdhousehold, there are over three thousand things, and many of them are not needed at all!

4. Create a saving space

You may ask your parents to help you open a savings accountsavings accountsavings account, or keep your savings in an old‑fashioned piggy bank or a hidden compartmenthidden compartmenthidden compartment in your wallet. Wherever you store your money, it must be hard to take it out on impulseon impulseon impulse. If you make it difficult to spend the money right awayright awayright away, the urgeurge (noun)urge will pass. And that’s how money is saved – small amounts add up to bigger sums quite fast.

5. Think of some painlesspainlesspainless spending compromises

Analyse what you are spending money on, and see if you can eliminate something. In this way, you will avoid overspendingavoid overspendingavoid overspending. Remember we have loads of stuffstuffstuff we don’t really need. These unnecessaryunnecessaryunnecessary things sooner or later end upend upend up in the bin.

Instead of grabbing fast food a few times a week, pack a sandwich and snacks from home. Let’s look at the numbers – if you spend 10$ on fast food two times a week, it will make 80$ a month and 480$ in half a year. Eating healthy homemade sandwiches can save a lot of money.

Be smart and start saving today!

1 Źródło: Anna Lech, licencja: CC BY-SA 3.0.