Common sense steps that will carry you through life

Two things to remember always are: Pay yourself first, and… Don’t spend what you can’t pay for.

If you start doing this as soon as you begin handling your own money, then you should be okay all along.

A…… Always pay yourself first.  That means when you receive money from working, gifts, etc., set some of it aside and put it in a savings account.  If you do this each and every time, it will become a habit and you’ll see your savings grow. It’s common sense.

B ….. Budget.  If you learn to budget now, it will become second nature…a good habit.  If you don’t have the money to buy something, you can’t get it.  You can set part of the money you have for that special item, but until you can pay for it in full, don’t get it.  It’s called budgeting or ‘living within your means’….  and … it keeps you out of debt.

C….. Common Cents. Save every penny you can. They add up and every penny counts.  You will never regret doing so.

Budgeting as a teen is easy and it will teach you the concept of how to budget as an adult.  The items within the budget may differ, but the end result is the same…. You can’t spend money that you don’t have.

As a teen, you may receive a money gift, and it may be a partial payment for something you’ve been wanting/needing for a while. Even so, try to put a little of it into savings and use the rest for the coveted item.

If you have a part time job, you probably get a paycheck each week.  This is the money you should absolutely learn to budget.  The following are probably the categories you’d need, but you can adjust them to suit what you need. Make a list of how you split your money up.  Start with savings.

You may have to give a little towards what was always referred to as ‘room and board’….that means you help pay towards what you eat and where you sleep.

If you drive, you probably need to pay for at least a portion of insurance. And don’t forget the gas tank…if you use the car, you need to fill it with gas.

You should also set a little aside and holding that money out for things you may want or need…. such as a new phone, sneakers, sweatshirt etc.  Paying for some of your things gives you pride in the fact that you’e capable of doing that yourself.  This ‘set aside money’ will also be for when you’re out with friends, you can get a burger or pizza.

The money you put into savings should stay in savings….. for ‘a rainy day…way down the road’. Once you have at least $10. set aside for savings, open a savings account at a nearby bank. Most banks don’t charge any fees for those under age 18.  Take a few extra deposit slips home, and each paycheck, when you go to the bank to cash your check, fill out a deposit slip so you can deposit money into your savings account immediately…out of sight, out of mind.

If you don’t have anything on your wish list, then set some money aside and add to it for when the time comes that something special comes on your wish list…. you will have all or at least some of the money already set aside.

Saving something from each paycheck, by paying yourself first is common sense. And budgeting is easy.  Every penny counts…it’s Common Cents!

You can do this!