This was posted by Laron and Xavier on 7 NOV 2013.
Savings and budget notes:
Consistent Tracking: 50% of earnings/allowance
Saving it as a resource.
Worries: go crazy with money, Spending it on same thing over and over again. Junk food, games, candy, going to mall.
Later in life: House car notes, Starting own business,
Money goals chart
Put money aside
“If you set aside $100 every year starting at age 14, you’d have $23,000 by age 65, but if you start at age 35, you’ll only have $7,000 by age 65.” Laura Shin from from Forbes states.
I often hear from my mom “I am not made of money.” Usually she says this when I am at the store and asking to get a game or toy. What my mom is trying to tell me though is not “No” but that if I want something I need to work hard to get it. She taught me about saving and creating a budget.
Currently, I get $30 in allowance a week. Half of that goes into a savings account and the other half I can spend on anything I want. My mom’s fear is that I would go crazy with money I have in hand and spend it all on unnecessary things like junk food or candy. By saving, I can put money aside for bigger purchases like toys or in case of an emergency. Later on life, these goals can be expanded to paying for college or buying a house.
Now, that seems along ways away but you can start seeing how you can buy big items by making a money chart or a budget. Figure out how much you will need to purchase the item you want, think about how much money you can save each week or month and then calculate how much time it will take you to reach your goal. Keep track of this goal somewhere visible. You can keep a chart in your room or on the wall and update every time you add money to your account.
When you save money in a bank account, you gain interest on the money you invest. When you keep money in an account for a while, banks are giving you interest on the interest you have already earned. This called compound interest. On the Forbes website, author Laura Shin states, “If you set aside $100 every year starting at age 14, you’d have $23,000 by age 65, but if you start at age 35, you’ll only have $7,000 by age 65.” This is due to compound interest.
Overall saving and budgeting money will pay off in the future and help you reach the goals of a fast car or a big house. It may seem hard but gaining these skills now will help you achieve your dreams for the future.