» Saving for a Rainy Day
Have you ever heard someone say they’re saving for a rainy day? What does that mean? Do we need to spend more money when it rains? Shouldn’t we save for sunny days too?
It turns out saving for a rainy day just means saving up money for a time when things are bad and you’ll need more money. For example, if your favorite toy breaks (a rainy day, right?) extra money to buy a new one would be pretty nice. The main idea is that it’s a good to save money when you have it and things are going good, so that you’ll have money to help out when things go bad. It’s a really simple idea, but really smart!
Are you a good saver? Is it easy to save your money or is it tough? Here are a few tricks to help you increase your savings:
- Set a goal! How much money should you save? That depends on what you’re saving for! Let’s say you want a Nintendo Switch, and your parents are willing to help buy it but you have to save $100. It can be tough to save $100 in a short amount of time. That’s why it’s important to have savings goals – and stick to them. If you saved $25 a month ($6.25 a week), you could save $100 in four months!
- Track your money. Get a notebook that you only use to keep track of your money. Write down what you bought, when you bought it, how much it cost, and why you bought it. Your money journal will teach you about your spending habits. For example, maybe you’re spending $5 a week on in-app purchases. Are those purchases really worth your money or would you rather save that money for something else? That extra $5 a week could help you get to your savings goal faster.
- Be a smart shopper. You’ve met your savings goal! It’s time to get the item you’ve been wanting. Don’t rush to the store and buy the first one you can find. Ask your parents for help to shop smart. Check out prices and look for sales and coupons. If you end up saving a dollar, that means you have a dollar to spend on something else, or to add to your savings!
Do you have a safe place to save your money? If not, check out our options for Youth Savings!