Kw-logo-smaller

How to Save for Something Big

Whether you want to save up for a cool video game or your college education, you're going to need a financial game plan. Just ask your parents who probably labor away, constantly dealing with having to manage a yearly efile, paychecks, bills, and savings of their own. When it comes to establishing a financial plan, check out some of these ideas that'll get you started!

Get a Savings Account

If you're serious about saving your dosh, keeping it in a shoe box isn't going to cut it. It's time to start a savings account. This account should be separate from your checking or "spending money" account. Look for a bank that offers a higher interest rate (that's the money the bank pays you to keep your cash with them) and also make sure they don't charge you a lot of service fees. In fact, a lot of banks don't charge kids any service fees at all, so shop around to find the right bank for you.


Start Saving Your Money Now

The next step is to start putting money in your account. Start with whatever you have, whether it's five bucks or a thousand, it all helps. The best thing to do is to make a saving plan. Decide how much you're willing to put aside every month and then do it. If you already have a checking account, most banks will be able to set up an automatic transfer every month - so the cash will come out of your checking account and go into your savings automatically. This is helpful cuz it's way easier to save money if you never have a chance to spend it in the first place.

Advanced Options: Investing Your Money

If you have a serious goal (paying for college, backpacking through Europe after graduation, etc.) the best idea is to start making your money work for you. The way to do this is to invest your money somewhere where it's going to make more interest than in your savings account. Here are some options:

  • Bonds: When you buy a bond it means you are lending money to someone (for example, your government or a company). With a bond you get a higher rate of interest than with a bank account, but you have to wait longer to get your money back (sometimes 10-15 years).
  • Stocks: When you buy stocks you are actually buying a tiny piece of a big company (for example, you can buy stocks in Disney, McDonald's or Nike). You can often make a lot of interest in the stock market but you also run the risk of losing money too. If the stock goes down, the money you get back from your investment goes down too.
  • Mutual Funds: Mutual Funds are like investing on your own, but instead you pool your money with other peeps and invest in a bunch of things (stocks, bonds etc.) with the help of a financial manager. This is a good option cuz you have a professional doing all the hard work, and it is less risky since you don't have all your investments in one place.

Other Investment Options

There are tons of other investment options out there and a financial advisor, banker or a money-savvy 'rent might have some cool ideas for your specific situation. If you're trying to save up for school, you might find that your government offers some saving help. Some countries and states will chip in to your college fund, while others will give you (or your 'rents) tax breaks. Check out your government's web site or ask your school counselor.

Related Stories:
41 Comments

latest videos

F1113348125343

Where Do You Get Your Cash?

  • I get most of my cash from my parents.
  • I have a part-time job.
  • I get most of my money for my birthday or Christmas.
  • I do odd jobs like babysitting and cutting peoples' lawns.

related stories

Micro_babysit-article
Babysitting is a big job with lots of responsibility, but it can be really fun, too, and a great ...
If your parents have been stressing over money and you feel anxious because of the environment, w...
Micro_kidpreneurs-article
Kidpreneurs … it’s kind of a funny word to say, right? But there’s nothing funny about having a g...

Random in the forums

IzzyCloud
IzzyCloud posted in Say Anything:
People hating me.... People bullying me.... People not believing me....... People...annoying the heck out of me........... It's so hard to even think straight anymore!! I had my first anxiety attack, who only knows what the future might hold for me...... I'm so ready to die..... 
reply 24 minutes
AlphaT
AlphaT posted in Debating:
"hollybl2468" wrote: "-Karpov-" wrote: That doesn't have anything to do with what I said   It has everything to do with what you said. Every generation thinks they're better than the previous one. History repeats itself because human beings are arrogant and believe we're superior to everything, whether it's older generations or in this case, animals.  ...That's because we are. We have no reason to change our position in the animal kingdom. We are the superior species. 
reply about 1 hour
Rustybird
Rustybird posted in Say Anything:
Anxiety isn't something that can be described as a feeling or emotion. It is instead almost like a rain cloud. I use this rain cloud analogy because it doesn't fit the base of a shadow nor demon. Have you ever seen one of those rain clouds on cartoons that follow people around where ever they go? Anxiety is similar to that however unlike a shadow you will always know it's there and whenever you approach a social situation the rain gets heavier, and as you become weaker from surviving the heavy rain sometimes you take the easy way out and avoid the social situation altogether. You eventually feel helpless to the rain and give in, you avoid any social situation possible and begin to lose all skill in that area. Little did you know doing this to avoid heavy rain will instead set you up for a storm. A storm of awkwardness and low self esteem and that's when the dark thoughts seep in.  However there will be those people who will protect you for the storm, or those people who would be there if you needed them to and if you put in just a little effort you can evade the storm and though that little rain cloud may always linger around you, you will never forget about your experience in the storm, from that you grow as a person and eventually you will accept and laugh about this little rain cloud. You will accept yourself for who you are and push yourself beyond your boundaries to become the person you wanted to be. This person may not be perfect but if you are happy with the person you are then none of that should matter. None of the awkwardness, none of the mistakes and none of the imperfections should matter.  The only thing that does matter is the fact that you are the person you want to be. The person you are happy being. (Just my experience with anxiety /: ) I had a lot to get off of my chest)
reply about 1 hour
Desmondlove1
Desmondlove1 posted in Debating:
We all know that the symbols and colors of God are only white. And devils color is red and black which stand for danger. I came to ask why did Satan choose two colors and mixed it together to make it scared and danger? And my another question is why did we always obey devils work and ignored Gods work? On my own mind i can say that is girls is the most human that do devils work, 95% and they do God work 5% But we guys can only do 40% of devils work and 50% for God.      Please if its false or true  story you can drop your comment below ........................................................... ...................................................................... ....................................................................................   What i understand in all these is   that  Satan is greedy and he came to destroy the world for those who give them chance like Nigeria have already give them chance, so is there for you  to choose one of this two masters God or Satan, because i know you cannot serve two masters at the same time;     Please give your vote with choice. .......................................................... ...................................................... .................................................. ............................................................... ...................................................................                             Thanks for your cooperation and thanks for your understanding                                                                       Sign by Desmond        
reply about 1 hour
hollybl2468
hollybl2468 posted in Debating:
"-Karpov-" wrote:That doesn't have anything to do with what I said It has everything to do with what you said. Every generation thinks they're better than the previous one. History repeats itself because human beings are arrogant and believe we're superior to everything, whether it's older generations or in this case, animals. 
reply about 2 hours

play online games