It can be difficult to save for your first big purchase, especially if cash is limited. But it’s not impossible, it just takes a little patience and a plan. Here are some simple ideas to help you get what you’ve been dreaming of.
1. Find the magic number
You may be dying to have the latest tablet or a new guitar. Do some research to find out exactly who is offering you the best deal and how much it will cost. Then ask your parents if they can contribute anything. Once you know how much you will need, think about saving a little more to pay for sales tax and other extra expenses, like a protective sleeve for your tablet.
If you are considering a larger purchase, such as your first car (offered in English only), ask your parents if they could contribute an amount equal to what you have, which could boost your savings. It also shows how serious you are about your goal, which could earn you extra points.
2. Know how much money you need to set aside
First, consider the amount of the purchase and subtract the amount of the savings you have set aside. Then, based on when you want to make the purchase, divide the remaining balance you need by the number of weeks until the purchase. That is the amount that you must set aside weekly to reach the goal. If the amount seems impossible, you may need more time to save or find other ways to increase your income or your parents’ contributions. The Savings Goal Calculator (offered in English only) can help you adjust the numbers if your goal is months or years away.
Have a picture of your goal on your phone or room to remind you of how happy you will be when you reach it. This may sound cheesy, but it helps avoid the temptation of impulse purchases, such as from a video game app or lip gloss near the register.
3. Save without thinking too much
If you don’t have a bank account, it might be a good time to open one with the help of your parents. You could ask them to deposit your allowance there or, if you have a paycheck, ask them to set up direct deposit. This way, you will have to take more steps if you decide to withdraw money and it could curb the urge to spend. When you need cash, the urge to buy those new shoes on sale, the fantastic headband, or the third burrito of the week could have passed.
Some apps can also help you increase your savings by automatically transferring money from your parent’s account to an account that you designate. For example, they could round up your debit card purchases or transfer small amounts to your savings account at specific intervals.
4. Make some simple changes to your spending
To find out where your money is going, keep a spending diary for a month or two. It can be as easy as writing down the cost of each purchase in a notebook, or you could use an app that tracks your expenses. Once you’ve started, you might like to know where your money is going. You will probably also find that small amounts can quickly add up to several dollars. Watch where you spend your money and see if you can cut out certain things that are less important when you compare them to your big goal. Or replace any regular expenses with something cheaper.
Whenever you need to boost your motivation, see your goal photo, or text your mom or best friend to cheer you on.
Effortless changes can reward you. If he buys fast food three times a week because he gets hungry between school and practice you save only $ 10.00 per month. Better, bring a sandwich and snacks from home. You will save about $ 780 in 6 months!
5. Find ways to earn more money
Check your progress every two weeks. If you’re not saving as fast as you’d like, maybe you could:
- Ask your supervisor if they can give you more work hours
- Offer more help with household chores, or help with a large project around the house, like preparing the garden for the change of season or cleaning the garage, in exchange for a higher allowance
- Find a temporary job, such as taking care of pets or washing cars in your neighborhood
Whatever your goal, reaching it will taste glorious because you have calculated for yourself how to achieve it. Plus, you’ll have learned smart savings habits that you can use for the rest of your life. Nothing bad.
