Saving for Success – For Teenagers
It’s important to plan for success by breaking down your goal into small manageable bites and working out what you can do to save towards your goal. What you want in your life affects what you do, and when you’re saving for that big holiday or that adventure experience you’ll be more likely to reach success by putting a plan in place.
Here are 6 tips for reaching success:
Tip 1: Set a specific goal.
When setting goals, follow the SMART principles:
Specific (and strategic) – What is it that you want? Why is this goal important? Where? When? Who?
Measurable – How much do you need? How can you break this figure down into bite sized chunks?
Attainable – Are you giving yourself an appropriate time frame? How likely is it that you can achieve this?
Relevant – Is this important to what you want to achieve ultimately?
Time – When do you want to achieve this by?
Tip 2: Break your goal down
Psychologically when you have a large amount of money that needs saving and all you see is one big figure, you’ll find it harder to save. It will feel further away from being achievable. To counteract this, break it down:
How much do you need all up?
How much do you earn each week?
How much do you need to save per week or month?
Tip 3: Work out how you can cut back on your weekly spending habits.
Having broken down your goal now into bite sized chunks you’ll know just how much you need to save.
The next part is working out what you can do to achieve your goal.
Keep a spending diary!
Now days, setting a budget is much easier thanks to some efficient apps on the market. Check out Track My Spend which is produced by Money Smart, a financial resource run by the Australian Securities and Investments Commission (ASIC). From this, you can get a clear idea of what you are spending your money on and potential areas that you could save.
Here are some ideas of how you could save:
Save $50 a week a month by making your own coffee at home rather than buying out!
Save $45 a week by bringing your lunch to school three times a week!
Save $15 a week by drinking water out of the tap rather than buying bottled water!
Save $10 a month by cancelling your Netflix subscription!
Save $5 a week by walking or riding somewhere rather than getting public transport!
All up, by including these simple strategies in your week, you could save $117.50 per week – nearly $500 a month!
Tip 4: Separate your spending money from your saving money.
So often when we have money in our bank account we think we have more to spend. A simple way is to open up a separate savings account and have your bank deduct a certain amount each month. Make sure your account pays some interest and has minimal service fees.
Tip 5: Celebrate your successes
Each step of the way, celebrate your successes with your friends and family. By keeping yourself accountable for your goal, you’ll be more inclined to save and forgo that extra coffee or magazine!
Keep your vision and goal alive by sticking a picture of your dream holiday on your fridge or new kitchen renovation somewhere you can see it every day.
And lastly, remember every small amount helps.