- Creating a Budget & Making a Savings Plan
- Savings Accounts and Earning Interest
- Saving Money While You Spend
Creating a Budget & Making a Savings Plan
Creating a budget and saving money isn’t easy. It takes a little practice and a lot of discipline. A good way to start is to develop a savings plan. Just follow these steps:
Step 1: Pledge to stick to your plan.
Step 2: Figure out how much money you have coming in each month. Count your income from your allowance, part-time job and any other sources.
Step 3: Work out how much you want to save. Divide the money into several different categories:
- Everyday expenses
- Savings for large purchases
- Savings for the future
- Savings for investments
Step 4: Put your plan in writing. Track how much money you have coming in and how much you spend.
Step 5: Set spending limits.
Step 6: Adjust your plan as needed.
Your Savings Plan
A savings plan shows you where your money comes from, how much there is and where it goes.
Now take a look at where you spend your money. Do you overspend in several categories? By keeping track, you’ll learn about your spending habits. Then you’ll start to see ways to save.
Savings Accounts and Earning Interest
Make your money work for you by saving at Blue Chip FCU! Blue Chip FCU will pay you interest for keeping your money in a savings account.
Here’s an example of how interest works:
- If you save a dollar a day in a jar in your room, after 10 years you’ll end up with $3,650. That’s more than a small chunk of change.
- However, if you save that dollar a day in your credit union savings account, earning 2.5% interest, you’ll end up with $4,147. That’s an extra $497!
Where does this extra money come from? It’s the magic of compounding interest. Compounding means that if you save the interest that your money earns, it will earn interest, too. That’s right; you can earn interest on your interest.
As you save more money, you’ll discover ways to make your money work even harder. There are savings products that pay even more interest than savings accounts. For example, money market accounts, bonds and certificates of deposit. You can find out more about these products at the credit union.
Saving Money While You Spend
Saving money isn’t just about putting money in a savings account. You can also save money by being a smart shopper. Here are some ways to stretch those dollars:
1. Don’t impulse shop
When you’re hanging out with friends at the mall, don’t buy something just because you think it looks cool. First, step back and ask yourself the following questions:
- Do I really need this item?
- Am I sure that I’ll use it or wear it?
- If I make this purchase, can I still pay any debts I owe?
- Can I find this item cheaper or on sale somewhere else?
2. Shop the sales
If you shop the big sales to buy needed items, your shopping will stay focused and you’ll get more for your money.
3. Shop places other than the mall
The mall is one of the most expensive places to buy things. Try these stores instead and save some cash:
- Outlet Stores
- Discount Stores
- Consignment or second-hand stores
4. Go to matinees and discount theaters
Movies are expensive. Here are a few tips to help you save money:
- Look in the newspaper for discount theaters.
- Go see a matinee (usually a show before 5 p.m.). Matinee tickets are cheaper.
- Don’t spend money on refreshments at the theater.
5. Don’t waste money on sub-par products
Research items before you buy them to be sure that they do what they’re advertised to do. Check out consumer or specialty magazines and read their reviews and comparisons