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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.

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  • 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.

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HannahG
HannahG posted in Food:
"Kirsteeeeen" wrote:Tired of being told pizza is unhealthy?Try pizza on flatbread, pita bread, or even rice cakes.Best of both worlds.  :angelRICE CAKES?! Why haven't I ever thought of that?
reply 8 minutes
Abbygirl 9
Abbygirl 9 posted in General:
"Kirsteeeeen" wrote:"alienincognito" wrote:Don't talk to anyone unless you're spoken to, try to stay out of the limelight, the teachers are the enemy but can have nice moments. No matter how fancy a school is, there will be behaviour problems. Homework can be left to the last minute depending on how tactile you are, after the first few months you'll want to disappear unless you become popular but hang in there! Also, there are three types of people at Middle School or Secondary School:The cacti-The cacti are people who seem hard on the outside [we all have to be in Middle School] but are really lovely and soft if you get to know them. Some cacti can be pricks [no pun intended] but most are nice enough people so a cacti is probably an ideal friend at Middle School.The rocks-AVOID AT ALL COSTS! These are the people who are completely tough and are often bullies. It often seems like they have no emotions because they don't. They are sociopaths and must be avoided. But they are often popular jock kids.The marshmallows-These guys are pretty good, they're soft all the way through and get along well with most people and mostly abide by the rules. They can be hurt easily and roasted because they're so soft. Marshmallows are often smart and get along well with teachers as a result. The only flaw with marshmallows is that some have the tendency to rub their good grades in your face and make you feel insecure but they're nice people mostly.Oh and we can also get cacti rocks and spiky marshmallows.Hope I helped  Teachers are never the enemy!! They're there to help you. They can be a very valuable resource and it is so very important to collaborate with them to make the most of your learning experience!  If you put off a cold attitude and don't speak to people, they're more than likely going to assume you're stuck up and that can make the experience a lot worse than it has to be. Smile, be kind, and if there's someone picking on you, tell a teacher or other staff member, and try to stay out of their path. (I know from experience being an "outsider", it's better not to make yourself a quiet target). im nervous about starting high school.  middle school was alot of fun but you do get alot of classwork and homework. i couldnt have said it any better like you did kirsteeeen.   [s:p/zxl]
reply 9 minutes
Kirsteeeeen
Kirsteeeeen posted in New Users:
Welcome to KW! :D
reply 11 minutes
Kirsteeeeen
Kirsteeeeen posted in Food:
Tired of being told pizza is unhealthy? Try pizza on flatbread, pita bread, or even rice cakes. Best of both worlds.  :angel
reply 12 minutes
Kirsteeeeen
Kirsteeeeen posted in Debating:
Doctors might be the more ethical choice, but honestly I think a lot of celebrities do deserve high salaries considering the scrutiny, lack of privacy, and judgement they go through. They're human too, and their lives are turned upside down once they become part of the spotlight.  Both are respectable careers, in their own ways, and I think that certain positions in the medical profession should get a raise.
reply 13 minutes

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