Gen Z can start saving money early for the future. Here are some financial tips for Generation Z to improve their money saving habits.
When you were much younger, the concept of how money works may have been lost on you, having only encountered it a few times. Now that you’re a bit older (and, hopefully, wiser,) it’s best to start forming some life-saving habits like saving money. Whatever your reason may be for wanting to bulk up your piggy bank, read on to learn five tips for young people to start saving money now.
What should Gen Z save up for?
When it comes to saving and spending, the most important thing to remember is that you’re thinking the long term. Yes, this takes a lot of discipline and maturity. You’d think saving isn’t fun, but you’d think again once you’re able to peacefully sleep at night knowing that you’re financially secure.
That said, why should you save now? To give you a better idea of where your savings could go, here are a few things young people should save up for.
1. Weekly allowance
Before you start thinking about all the things you could save for that are on your wish list, consider first if you need to help with your weekly necessities, like your allowance. Funding this can give you an idea of what it would be like to fully support yourself in the future. It is, however, kind of a big thing to take on, so take time to really think about this before you commit to it.
2. School requirements
Got a big school-sanctioned trip coming up? Need to buy a few materials for an important project? Such school requirements are good things to save up for as well. Unlike your weekly allowance, they are relatively less of a commitment, but would still give you the chance to save up for something you really need, which could in turn give you that sense of independence.
3. Your first big spend
If you don’t think you need to help out by saving up for school necessities, consider saving up for your first big spend. This could be a car, an expensive trip with your friends, or a gap year before college. Just think about how good it would feel knowing that you got something important by saving up for it.
4. A college fund
Although college may still be the furthest thing from your mind, your future self will thank you if you start saving up for it as early as now. Even if you don’t plan on going to college, having some money saved up would definitely help you pursue your plans after high school, whatever they may be.
5. An emergency fund
Even if your daily expenses are well-funded and your parents did a good job of setting up your college fund, you still can’t be completely sure of the future. If you set up an emergency fund, you’re preparing yourself for anything that could happen, whether it’s as simple as a broken car or as serious as unexpected medical bills.
Tips For Gen Z to Start Saving Money Now
Like most things, saving is easier said than done – but that doesn’t mean it isn’t doable! If you’re really serious about saving money now, here are five tips that could help you out.
1. Set clear goals
Some of the best reasons to save have already been previously outlined for you. For you to save successfully, figure out exactly why you want to save first. Keeping that reason in mind will not only keep you motivated, but will also help you set more specific goals, like how much you need to save in a given amount of time.
2. Learn how to budget
You’ll find that it’s significantly harder to save when you don’t know how to properly manage your money. The easiest way to set a clear budget for yourself is to list down how much money you get in a given time (say, every week) as well as how much you spend on different things.
From there, you can evaluate how much money you’ll have left over to save. If it’s not enough to reach your goals, consider evaluating your expenses to see if there’s anything you could cut back on. To make this whole thing a lot easier, you could install a budgeting app on your phone.
3. Keep your money elsewhere
The piggy bank is a simple yet ingenious invention; it makes it harder for you to withdraw money than it is to deposit it. Since you’re human and are allowed to be tempted occasionally, this should be your approach with your savings.
You could go the old-fashioned route and use an actual piggy bank, or, better yet, you could put your money in a bank. Now, there are different types of banks and bank accounts, so research which one is the right fit for you and your goals.
4. Consider increasing your income
If you’re determined to reach your savings goals and if you find that your current savings aren’t quite enough to do that, you could consider looking for an additional source of income. If you’re old enough, there might be part-time jobs in your area that you could juggle with being a full-time student.
Otherwise, you could ask your family if there are any additional chores you could do for them that they could fairly compensate. Just remember to avoid using any illegal and unethical means to earn more money – it’s just not worth it.
5. Keep learning
Once you’ve gotten the hang of saving, you should keep learning about how other people successfully save, and, if you’re ready for it, how they grow their money over time through the right investments.
Saving money at a young age is no easy task, but the fact that you made it to the end of this article already shows that you’re at least willing to learn more about it. Congrats on completing this first step! Now it’s time to put the things you’ve learned here into practice. Are you up for that challenge?
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