Teen Article: Why You Should Save Money
Even If You Think You’re Too Young
As a kid, it’s easy to spend all your money – you have no bills or loans you’re obligated to pay. However, there’s always some worry you might not get your money’s worth from what you buy. If you wait to make a purchase, you can watch the item’s price go down, earn some interest on your savings, research what you want to purchase, and figure out if it’s really worth buying.
Sure, it is fun to spend, but it’s much more rewarding in the long run to be careful with your money. When you don’t have a job, you may not receive money but a few times a year, so why waste it? Self-made billionaire and Berkshire Hathaway CEO Warren Buffet, is a great example, as he got a head start by saving his money and only investing in worthwhile purchases.1 This has always been my philosophy when it comes to spending, and I have never regretted it.
You might think it doesn’t really matter what you buy – it just matters how much fun you have with it. While my brother was busy spending his money on toys and video games that he got tired of after a few months, I was saving. At the time, I was interested in MinecraftTM, writing short stories and poems, and playing various free computer games. I also wanted to try my hand at digital art. Tired of sharing a computer with my brother and parents, I decided to research purchasing one for myself. I soon figured out laptops are generally cheaper than computers and have the added benefit of being portable. As a writer and artist, I find desk space is very valuable, and computers can take up a lot of room.
Without the benefit of an allowance, it took me about three years of saving my Christmas and birthday money to reach the $900 I needed for the MacBook Air® I wanted. It would have taken even longer if I hadn’t had some money already saved up. After waiting for such a long time, it was so rewarding to finally be able to buy my laptop. I have used it for four or five years now, and it has been incredibly useful for high school assignments. I have also been able to use it to share my art and writing with the world.
You can be like my brother and spend your money as soon as you get it, wasting it on things you’ll regret buying later. Or, you can be like me and save your money so that when you find something worth buying, you will not have to wait as long to save up for it.
1. Hess, Abigail. "These Childhood Hobbies May Have Helped Warren Buffett Become a Billionaire." CNBC.com, January 17, 2018, https://www.cnbc.com/amp/2018/01/17/these-childhood-hobbies-may-have-helped-warren-buffett-become-a-billionaire.html
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. SLFCU will award teens $100 for published articles. Click here for details and to submit an article. SLFCU will review all submissions and respond within 30 days.
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