Do you know a single person who is not interested in saving money? No matter how much you earn or what kind of budget you have––if you have one at all––we are willing to bet that you want to save money and be financially secure. If so many people want to save, why is it so hard to know where to begin and how to actually do it?
Only 17 states in the U.S. require high school students to take a course in personal finance, and studies show that students without a financial education are more likely to suffer financial problems in the future. To help anyone who has not studied finance or learned how to save, we’ve put together a guide to help you get started. The best thing you can do now is educate yourself to help protect your financial future! It’s never too late to learn the following tips.
This is the most helpful way to start saving money. Put together a list of how much money you earn and how much money you spend. List monthly expenses like rent or mortgage, utilities, food, entertainment, travel, and subscription services. Many people use the 50/20/30 rule: divide your money from each paycheck into 50% essential needs, 20% savings and debts, and 30% wants.
How much do you want to save? What are you saving for? Take into account any future events you should plan for, such as buying a home, paying off debt, college funds, retirement savings, or taking a vacation.
How many of your ‘wants’ are things you could easily live without? Cancel any subscription services you’re not using. Adjust your spending in areas such as dining out or shopping for new clothes if you notice high amounts of spending in those areas. How can you adjust your spending to accommodate for more saving?
Keep your savings in a secure account that offers the possibility of growth. Opening a Certificate of Deposit savings account usually gives you the highest interest rate and limits your access to funds, so the money stays put and grows over time.
Let us know what you are currently doing to save. Do you have any tips you’d like to share with the Banesco community? Comment below!
Council for Economic Education 2018 Survey of the States: Economic and Personal Finance Education in Our Nation’s Schools