Four Savings Tips for Teens

I am often told by youth that "money" is the most essential thing needed for living independently. While I don't deny that, I never seem to have any when I need it. One of the most known tips for managing money is knowing that one should "save" a portion of their earnings. Even 5% of one's income saved is better than 0%. I advise youth to save 10%, though I know saving any amount can be difficult at times. While in college, it was hard to save anything. Like many of my fellow college students, I was living "hand-to-mouth", and can remember many times knowing my meal (and sometimes meals) for the day was going to be Ramen noodles. I ask my youth to look at how many expenses they encounter NOW. Most have none. So larger percentages of their incomes can expect to be placed into savings.

I wanted to post some tips for saving that will allow especially our foster youth to be setting some financial goals for their future. I ran across these through Yahoo, and encourage not only youth, but also adults to use this resource in getting back to the basics of managing our finances.

1. Whether you get a $10 check for your birthday or make $50 a week at a part-time job, get in the habit of putting a portion of that money aside for savings. You can go with a consistent percentage, like 10% or 25%, or you can simply take a few dollars out and put it away. Consistently putting money into savings like this will grow your dollars faster than you might think. For example, if you put just two dollars a week in to your piggy bank, by the end of the year you will have $104 saved.

2. If you really want to save your money for the future, you might try cutting out your trips to Starbucks or McDonald's every week. While this is an admirable strategy, completely cutting out something you love in favor of saving cash isn't always the easiest goal to set. Instead, start with baby steps like cutting your Starbucks trips from four to two visits a week and placing the money you don't spend in to your savings fund. By cutting spending back instead of completely, you will be more likely to meet your goals and save consistently.

3. It's a simple fact: when you don't have it, you won't spend it. While it is a good idea to always have a few dollars in your wallet for emergencies, you don't need to flash a wad of cash every time you walk out of your house. Take only what you need, and leave the rest at home in a piggy bank or in your savings account where you will actually have to visit the bank to get at it.

4. When you manage to save some cash, take the money to the bank and open up a savings account. Most banks will waive the minimum balance requirements for minors, but you will still reap the benefits that the account offers.

I hope these tips help. I want to thank Amber in Money Management for Kids and Teens @ Yahoo.com.