The Importance of Saving Money

You should always start saving money early and as often as you can. Earning an allowance for chores is a good way to become responsible with money. Some of the money you earn should be set aside for short-term savings. These funds can be used to purchase games, toys and candy. You should also set aside funds for long-term savings. These funds could go towards a college fund or car.

Everyone can use a little guidance on how to save more money. Here are a few tips for your savings plan:

Tip 1: Set goals. Pledge to come up with a plan and stick with it. Saving money now for use in the future gets easier if you know what you want and how much you’ll need.

Tip 2: Have a strategy for saving money. Every time you receive money – from your allowance, a gift, a summer job or some other source – try to automatically put some of it into savings instead of spending it. That approach to saving money is known as “paying yourself first.”

Tip 3: Cut back, not out. Are you spending $5 a week on snacks? If you save $2 by cutting back, after a year you’ll have $104 to put into a savings or investment account that earns interest.

Where to Keep Your Money:
You probably started saving money years ago in a piggy bank and may now have another favorite place at home to stash your cash. That’s fine for smaller bills and coins, but what if you’ve got checks and large sums of money from birthday gifts or your job? Now may be a good time to think about opening your own bank account. There are lots of good reasons for opening a checking or savings account at a bank:

 

When Will You be a Millionaire?
Want to know how long it will take you to become a millionaire? Go to www.themint.org/teens/when-will-you-be-a-millionaire.html and try the different savings plans and find out.

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