Today we are going to cover SAVE & BUDGET.
Let’s start with SAVE.
Did you know? If you save $5 each week, you will have $260 by the end of the year.
It's tempting to spend all of your money as soon as you earn it, but you’ll be better off in the long run if you save a portion of it. The easiest way to save is to “pay yourself first.” That means setting aside a certain amount of money you earn and keeping it in a savings account. The key to saving successfully is by making it a regular habit.
It’s important to save money for a rainy day, just in case you need it for any unexpected expenses like a broken laptop. Another portion of the money you receive should be set aside for your various goals. These goals can be categorized as short-term (art supplies, a musical instrument, or sports equipment), medium-term (a tablet, smartphone or laptop, holiday spending money, a new bike), or long-term (college fund, a car, space camp).
Click here to learn about the effect of compound interest on your savings.
Now let’s go over BUDGET a bit.
Did you know? If you save the $6 you might spend on popcorn during a monthly trip to the movies, you could have $72 by the end of the year.
To make good decisions about how to spend your money, start by setting your money goals and work toward achieving them with a plan in mind. A personal budget is a plan that helps you put the money you’ve earned toward savings, expenses (lunch, bus, or entertainment money), or paying off debt (money you may have borrowed).
When you’re creating a budget, it is important to understand the difference between something you need to have (food, shelter, essential clothing), and something you want to have (games, a new bike, a skateboard). Remember to take care of your needs first. It’s a balancing act.
