Summer is a time for fun in the sun and—if you’re in high school or college—working to earn money for the school year. Everyone knows it’s easy to spend money—especially on fun summer activities. But saving money is a considerably more difficult. To get you started, here are some tips from Bank of Luxemburg:
Create a budget and stick to it. It can be intimidating at first, but knowing how much and where you’re spending your money will help you keep your finances under control and start good habits that will last throughout your lifetime.
Make saving a habit. It’s a good idea to save a set percentage of every paycheck—automatically if you can. If you never have the money in your checking account, you’re less likely to miss it. Once you become accustomed to this practice it will become painless.
Carefully consider purchases. Before buying a non-essential item, sleep on your decision. You just might be surprised at how many things you decide NOT to buy.
Keep control of credit card debt. To help avoid future money woes, use credit cards only for emergencies and pay off the balance each month. Make sure all payments are on time to avoid penalties, late fees and interest.
If you already have credit card debt, try the “debt snowball,” where you pay off small balance cards first. Once those balances are paid in full, apply the monthly money you were using to pay off that debt to the card with the next largest balance.
Be selective when choosing bank accounts. Look for accounts that don’t charge fees and banks that charge reasonable fees for services you use. Don’t overdraw your account, and use bill payment services to eliminate postage stamps, envelopes and paper checks.
For more banking and saving tips listen to the Money Smart Podcast Network right from our website.
Do you have any helpful tips? Let us know how you hold on to your hard-earned summer job cash!