Kw-logo-smaller

How to Save for Something Big

There are tons of ways to save your cash.
Saving Your Money

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 file taxes online, 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:

 

>
>

readers voted!

Comments

MewSilver

MewSilver wrote:

This doesn't work for me ;--;
commented: Tue Aug 13, 2013

HeBrokeMyHeart0
I can't save for nothing! Jesus help me :) lol
commented: Sat Jul 06, 2013

Chris the awesome
iam i have saved so far £200
commented: Thu Apr 18, 2013

there are 41 more comments

Please login or register to add comments


like this article?
Sign up now to get more just like!

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

brilliantstudent
A very good friend, amazing, sweet.
reply 2 minutes
Jelly3
Jelly3 posted in Say Anything:
She's waiting for her birthday. :3
reply 5 minutes
brilliantstudent
She is active in the forums...
reply 13 minutes
Jelly3
Jelly3 posted in General:
I'm not at Anvi's (my cousin's) house right now.
reply 22 minutes
Ghostling
Ghostling posted in Food:
Nah. I don't like many healthy foods xP
reply 29 minutes

play online games

Candy-100

A great online version of the famous Candy Crush. This is the best game launched...

Big_icon_(7)

Have you ever fancied being a ranger like those fantasy characters you love so m...

Big_icon_(4)

You run across the city in a car chase with the police officers.

Big_icon_(6)

The evil master kidnapped all of your friends!

Big_icon_(5)

Tic Tac Toe is back!