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Teen SavingsTeen savings are not a parent’s job alone. Some parents save for their kids’ future. Others can afford to buy their children cars, take them to school without the study loans and even get them their first apartment when they are starting out.
Doing it for yourself : This is not the case with all of us. Some of us have to sweat it all the way. We are not all born with the silver spoon like Paris Hilton and others. On the other hand, the sense of pride one gets from starting from scratch and making it to the top can be priceless. I have always paid for my university education from my small décor business. It’s a sacrifice I am very proud I made.
Keeping to your plan: It’s never early to start saving. Actually the earlier one starts, the greater the rewards. Set the savings goals with clear deadlines. (Please refer to our teens goal setting page). Have a well written plan with the focus on a dream you have. It could be buying your first car, buying your own stationary, etc. Monitor your plan monthly, its easy to miss deadlines. If your plan is to save $50 per month from your part-time pet grooming business, stick to it and focus on your vision. Teen savings, a very powerful wealth creation concept.
Bank account : Have a bank account that is created specially for your plan. Transfer money to it every month or every week and keep it there until you need it. Ask your parent or guardian to help you open a high interest account if you are a minor. That way your savings will also make more money for you.
Budgeting and teen savings: understanding that you have daily needs, I made provision for that. Drawing a budget that takes into account your bigger plan helps you to achieve. Budgeting is not only for your parents. Write down all your weekly expenses like fuel, cosmetics, lunch (which you are supposed to take from home everyday) and stationery.
Now look at your list and give a motivation on why you need each item. Clearly you don’t need designer jeans or a leather-bound diary. You may do your own unique denim covered diary from your old pair of jeans. Cut out the items you can do without (luxuries) and make space for more savings. Draw a new budget as soon as you get your money. Stick to your budget as much as you can.
Buying in advance: Planning most of your expenses well in advance will help you save lots of money. When there is a clearance sale, get as many birthday gifts as you can. Get the Christmas gifts in a summer sale and save on the rush-rush and high prices. Teen savings is a ticket to financial independence.
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