RP135 Hold on to Your Pocket Money

RP135 Hold on to Your Pocket Money

One day, you'll need to learn how to save money, even if you don't have anything to save for right now. Get used to saving and budgeting now! Then you'll have money when you do want something expensive, and you'll be practicing for your future.

Tip one: Be clear about how much money you have coming in. Do you get your allowance weekly or monthly? Do you earn any other money? Total your money for the period you want to budget for.

Tip two: separate needs from wants. You need money for transportation; you want to have money left over for snacks and games. Then decide which of your wants should get priority and which ones you can let go.

Tip three: Make a budget! Once you know how much money you will have in a period of time. you can decide how to spend it. separate the money for your needs and don't touch it for anything else. Then add up how much your wants will cost. See if you can make your needs and wants add up to 90% or less of your total allowance.

Tip four: Put your savings— the 10% or more that you aren't spending each month— far away. Put them in a bank or somewhere that you can't reach easily. You' ll be less tempted to use them that way.

Tip five: Write your expenses down, at least until you can get used to what they are. This way you'll know where your money is going and what you need to do to hold on to it longer.

Tip six: Put a little bit away every day. Even if it's just change, get used to having something left over. You'll be surprised at how much change adds up over months.