St. Paul, MN — The current savings rates in the United States are noticeably low despite revisiting record high interest rates.
Saving money is an important financial habit that can help you achieve your financial goals, such as buying a house, paying for education or retiring comfortably. It's the first step many take to then Invest into their future and explode their personal finances. For those under 18, it is especially important that being financially competent early will set the foundation for your future. It can also provide a safety net in case of emergencies, such as job loss or unexpected expenses.
Starting off, you'll need to create a budget — this will help you track your income as well as your expenses. Once you can visually see what's left you may create tangible steps to then save and invest your remaining capital. (It's important to double-check all expenses when calculating). You'll also want to set various financial goals, as it will create a sense of direction when dealing with finances. Having specific goals in mind can help motivate you to save money more efficiently. Consider what you want to achieve in the short and long-term.
You'll also want to cut as many possible expenses as possible. Look for ways to reduce your expenses, such as by negotiating lower prices for bills or services, cutting out unnecessary expenses or finding less expensive alternatives. About 90% of the time as teens, we don't go out of our way to compare all options, but if you make that conscious decision, you'll kickstart your journey to higher finances.
Finally, learn to increase your income while saving automatically. If you have the opportunity to earn more money, take it. This could involve asking for a raise at work, taking on a side job, or starting a business with income producing skills. One of the easiest ways to save money is to set up automatic transfers from your checking account to a savings account. This way, you won't have to remember to transfer money manually, and you'll be less likely to spend it.
Overall saving habits early on can be a large indication of future success (in terms of finance). It's the first major form of delayed gratification to experience in life with discipline and consistency; and the good saving habits will translate into larger and more fruitful things in life.