By: Emma Wu
Regardless of which grade you are in, it is never too early to start saving money and help the financial aspect of your future. From tuition to dorming to life expenses, college can be expensive. There are many ways to save money. Saving a little here and there will ultimately help you increase the amount of money you have saved, learn financial literacy, and reduce costs for college.
- Plan ahead in high school courses. Credits for AP (Advanced Placement) courses can be transferred to many colleges, reducing the number of classes you need to take. In addition, you would get college education at the high school level.
- Create budgets. This is another way to help avoid unnecessary expenses and control spending. Having a monthly budget helps keep track of how much money you are spending in relation to income. This also helps track school costs, leisure activity costs, and savings.
- Establish goals. This is an important part of financial literacy. Setting goals helps you plan ahead for what you are saving. This way there are set benchmarks to meet for saving amounts, allowing one to see where you are in terms of your goals at the end of each month or year.
- Set up a checking and savings account. Separate accounts for saving and spending help you keep track of funds that can be used for yourself. On top of that, with savings accounts, you can take advantage of higher yields and benefits that come with having money in the bank.
- Get a credit card. Although teenagers under 18 are not allowed to open their own credit card under their own separate account, you can have a credit card under your parent’s account or a debit card of your own. Using a credit card can help establish credit earlier under your name as an adolescent. With a good financial history and credit started earlier, you can achieve higher spending limits and better financial advantages in the future.
- Take advantage of student discounts. With high school IDs, you can get discounts off of many brands and items. On top of that, there are some software programs that are offered at lower prices or even for free through high schools. You can significantly lower spending expenses through looking at student-discounted items.
- Get a part-time or summer job. Earning your own expenses and saving here and there can help bring you close to your financial goals. Any extra cash is helpful, after all.
- Avoid impulse purchases. One of the easiest ways to lose money is through impulse shopping. This is when a consumer sees an item and buys it immediately without quite thinking it through, ultimately regretting the purchase. These impulse purchases can lead to one wasting money all too easily, and considering the consumerist world we live in today, they happen more than one would think. Exercising self-control and avoiding non-essential items can help reduce impulse shopping. Then, these funds can go into savings or into buying something that may actually be useful or essential.
These are some small tips that can help increase financial literacy, create good spending habits, and help you save up for college. While you may feel like you aren’t doing much to increase the amount in your bank account, saving a little bit each time adds up. In the end, every cent counts.
