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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

rainbowpoptart
"DoodleCat" wrote:Oh my gosh, thanks!Well, I mainly use watercolor to draw my painting.What I draw? I like to draw what I see. It's very interesting what you can find outside or inside, for example, a coffee shop or restaurant.I also am really into drawing animals, especially my three cats. No problem. (: If you have any questions, feel free to ask, I'll be glad to help. That's very interesting. I don't know many people who use mostly watercolours. Finding inspiration from the simplest things is a part of what makes drawing, and any type of art, fun.  I can't draw animals for the life of me, haha. I'm working on it though. Do you find the textures easy? Fur seems a bit complicated. "DoodleCat" wrote:And no, I haven't done a piece with her yet, but she just flew in from Washington yesterday.She's staying in MN for three weeks, and I think I'll have the chance too though! I'd be very interested in the outcome if you do. (: 
reply 19 minutes
LILDUA
LILDUA posted in New Users:
"DoodleCat" wrote:Wow Dua, great sketch!I think if you keep that up you'll be a great artist later on!You should try watercolor in your sketches, it's very interesting. ah thanks :) .. well i have uploaded a painting which i have done with water colors.. when its approved i am gonna post it ... :)
reply 29 minutes
DoodleCat
DoodleCat posted in New Users:
Wow Dua, great sketch! I think if you keep that up you'll be a great artist later on! You should try watercolor in your sketches, it's very interesting.
reply 32 minutes
LILDUA
LILDUA posted in New Users:
it me Dua .. i really like to do sketching and painting .. gotta some sketches and painting...
reply 34 minutes
DoodleCat
DoodleCat posted in New Users:
Oh my gosh, thanks! Well, I mainly use watercolor to draw my painting. What I draw? I like to draw what I see. It's very interesting what you can find outside or inside, for example, a coffee shop or restaurant. I also am really into drawing animals, especially my three cats. And no, I haven't done a piece with her yet, but she just flew in from Washington yesterday. She's staying in MN for three weeks, and I think I'll have the chance too though!
reply 36 minutes