Whether you want to start a business, go to college, or be a stay-at-home parent, saving your money is important. Most of us teens want to spend every penny we have to get all the cool new gadgets, shoes, etc. I don’t want to have money in my account just to save it, but doing so will help in the long run.
Let’s say you have a job and save a quarter of your paycheck every time you get paid. If you keep doing this consistently, you will be saving thousands of dollars to put towards college or to just have a head start on your career path. That's only a quarter – what if you save half, or even more? The problem most teens have is keeping their savings in their savings accounts. When I first got my account, I was set on saving and I did – I had $1,900 in my savings account in just 2 months. Sure, I had no spending money, but I was still happy that I saved that much.
At some point, I wanted to spend some of what I saved, so I slowly started taking that money out. Soon enough, I had spent all my money on stuff I didn't need.
Once you put money in your savings account, it should stay there until you have enough for what you're saving for. If you see something you like, wait until you have enough money in your checking account while still putting some in your savings account. Another important thing to know about saving is that you should save for important things like a car, not a new gaming computer. Sure, you can still get these things, but make sure it's from your spending money, not your savings.
Staying focused on your saving goals is important throughout your entire life. At face value, saving seems hard, but in the long run, it will be one of the best decisions you’ve ever made. If you save your money consistently, you will have a head start on a financially secure life.
Teens Can Get $100
SLFCU members age 13-17 are invited to submit an article on a financial topic to be considered for publication in our Dollars & Sense newsletter and on our website. Teens are awarded $100 for published articles. Visit slfcu.org/TeenArticles for details, topic suggestions, and to submit an article. SLFCU will review all submissions and respond within 30 days.
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