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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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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.

Random In The Forums

Abbergrl
Abbergrl posted in General:
Waymycheaksglow
reply 12 minutes
simran88
simran88 posted in Debating:
Why is this even a question? Girls don't have to prove to anyone that they can play football. We can and if we like we will play football. 
reply 24 minutes
simran88
simran88 posted in Debating:
Which country's schooling system are you talking about? Because different countries' schooling systems need to be different as each country is different and has different needs like Finland's schooling system and Korea's schooling system are very different but both the systems are considered to be excellent. I personally think that more than schools it depends on the teachers. For example, in India, CCE was introduced to make studies more practical and applicable but because many teachers did not understand the system properly it only ended up becoming a pain for us and the level of our studies dropped making parents think that the system was not good. 
reply 33 minutes
simran88
simran88 posted in Debating:
1. Complaining about girls being girly is honestly like complaining about water being wet.2. Idk why everyine here thinks that being girly is synonymous with being weak. You can be girly while being strong and powerful. Why do you haveto be like a boy to be tough and strong? I have seen so many boys that are NOT strong. That ddoesn't make them girly. You can like shopping and whatever you think involves being girly and be able to fight for yourself and defend yourself when you need to.3. Define "girly". If you think that being "girly" means caring about your looks then so many boys are girly too cuz they keep up with the trends and fads and style their hair and do go to the gym so that they can look impressive more than being fit. Will you call them girly? I doubt it. ADVERTISEMENT
reply 44 minutes
Pink_Cool_Girl
Of course, when me and my mom left me old school, they probably brought out the champagne. Me and my mom were a pain in the butt. One day, I had rocks in my pockets. My teacher told me to throw the rocks out. I faked throwing them out. Then she told me again. I threw the rocks out, but then she gave me a note because APPARENTLY THE ROCKS COULD OF SOMEONEWHEN I THREW THEMLIKE SHE ASKEDI MEAN WHAT EVEN
reply about 1 hour