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What is the best way to save money?
I am a senior in high school
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11 answers
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Afrad’s Answer
Hi Isaiah -
Save a specific percentage every time you get as if you're paying a bill, don't make it an option. Calculate how much money you are left with after covering all your expenses, then make a conscious decision to save a % of that every time you get paid (like a bill).
Be sure to have a good plan for the balance remaining after expenses so that it's not spent haphazardly.
It's a good practice to save in multiple ways. Basically have your main savings account, but also duplicate random amounts when you have in other ways. Many banks have savings accounts that auto-deposit a few dollars at a scheduled time. Some have a feature where $1 gets deposited every time you use your debit card. These small amounts do not have a huge impact but surely add up for you.
I also recommend having a separate savings account in another bank (other than your regular bank). This is a good way as it helps with the "you see you, you spend it" issue.
Also, at this very moment, CD (Time Accounts) has good interest rates. Money that you have in savings just sitting there, can be placed in one of these and gain you an average of 4% interest.
Additionally, try to apply the "don't spend what you don't have rule" to avoid spending from your savings. That is if you want to buy something but would need to draw from your savings, question if you really need it right now or if you can wait until you get paid again.
Hope this helps! All the best!
Save a specific percentage every time you get as if you're paying a bill, don't make it an option. Calculate how much money you are left with after covering all your expenses, then make a conscious decision to save a % of that every time you get paid (like a bill).
Be sure to have a good plan for the balance remaining after expenses so that it's not spent haphazardly.
It's a good practice to save in multiple ways. Basically have your main savings account, but also duplicate random amounts when you have in other ways. Many banks have savings accounts that auto-deposit a few dollars at a scheduled time. Some have a feature where $1 gets deposited every time you use your debit card. These small amounts do not have a huge impact but surely add up for you.
I also recommend having a separate savings account in another bank (other than your regular bank). This is a good way as it helps with the "you see you, you spend it" issue.
Also, at this very moment, CD (Time Accounts) has good interest rates. Money that you have in savings just sitting there, can be placed in one of these and gain you an average of 4% interest.
Additionally, try to apply the "don't spend what you don't have rule" to avoid spending from your savings. That is if you want to buy something but would need to draw from your savings, question if you really need it right now or if you can wait until you get paid again.
Hope this helps! All the best!
Updated
Jesse’s Answer
As a senior in high school, it's a great time to start building good financial habits. Saving money requires a combination of smart budgeting, disciplined spending, and finding ways to increase your income. Here are some tips to help you save money effectively:
1. Track your expenses: Use a budgeting app like Mint or Rocket Money to track your expenses. This will help you stay up-to-date with how your money is being spent and how it compares to the income you regularly bring in.
2. Create a budget: Based on your tracked expenses, create a realistic budget that includes categories for essential expenses (e.g., food, transportation, and school supplies) and discretionary spending (e.g., entertainment, clothing, and eating out). Make sure to allocate a portion of your income to savings. This can all be done through the same budgeting apps like Mint or Rocket Money.
3. Set savings goals: Establish short-term and long-term savings goals, such as building an emergency fund, saving for college, or purchasing a car. Having specific goals can motivate you to save more consistently.
4. Reduce discretionary spending: Look for ways to cut back on non-essential expenses, such as eating out less, finding free entertainment options, or shopping sales and discounts. Be mindful of impulse purchases and consider whether each item is a need or a want.
5. Save on essentials: Look for ways to save on essential expenses, such as buying used textbooks, carpooling, or packing your lunch instead of buying it at school.
6. Open a high-yield savings account: Open a savings account with a competitive interest rate to help your money grow faster. Look for an account with no monthly fees and a low minimum balance requirement.
7. Get a part-time job or side hustle: Increase your income by working a part-time job or starting a side hustle, such as tutoring, pet sitting, or freelance work. Allocate a portion of your additional income to your savings goals.
8. Save windfalls and gifts: Whenever you receive a financial windfall (e.g., a gift, tax refund, or bonus), resist the temptation to spend it and instead put it towards your savings goals.
9. Take advantage of student discounts: Many retailers, restaurants, and entertainment venues offer discounts for students. Always carry your student ID and ask if there are any student discounts available.
10. Learn about personal finance: Educate yourself about personal finance topics, such as budgeting, investing, and credit management. This knowledge will help you make informed decisions about your finances and develop good financial habits for the future.
By implementing these strategies, you can start saving money and build a solid foundation for your financial future. Remember that saving money is a lifelong habit, so continue to refine your budget and savings goals as your circumstances and priorities change.
1. Track your expenses: Use a budgeting app like Mint or Rocket Money to track your expenses. This will help you stay up-to-date with how your money is being spent and how it compares to the income you regularly bring in.
2. Create a budget: Based on your tracked expenses, create a realistic budget that includes categories for essential expenses (e.g., food, transportation, and school supplies) and discretionary spending (e.g., entertainment, clothing, and eating out). Make sure to allocate a portion of your income to savings. This can all be done through the same budgeting apps like Mint or Rocket Money.
3. Set savings goals: Establish short-term and long-term savings goals, such as building an emergency fund, saving for college, or purchasing a car. Having specific goals can motivate you to save more consistently.
4. Reduce discretionary spending: Look for ways to cut back on non-essential expenses, such as eating out less, finding free entertainment options, or shopping sales and discounts. Be mindful of impulse purchases and consider whether each item is a need or a want.
5. Save on essentials: Look for ways to save on essential expenses, such as buying used textbooks, carpooling, or packing your lunch instead of buying it at school.
6. Open a high-yield savings account: Open a savings account with a competitive interest rate to help your money grow faster. Look for an account with no monthly fees and a low minimum balance requirement.
7. Get a part-time job or side hustle: Increase your income by working a part-time job or starting a side hustle, such as tutoring, pet sitting, or freelance work. Allocate a portion of your additional income to your savings goals.
8. Save windfalls and gifts: Whenever you receive a financial windfall (e.g., a gift, tax refund, or bonus), resist the temptation to spend it and instead put it towards your savings goals.
9. Take advantage of student discounts: Many retailers, restaurants, and entertainment venues offer discounts for students. Always carry your student ID and ask if there are any student discounts available.
10. Learn about personal finance: Educate yourself about personal finance topics, such as budgeting, investing, and credit management. This knowledge will help you make informed decisions about your finances and develop good financial habits for the future.
By implementing these strategies, you can start saving money and build a solid foundation for your financial future. Remember that saving money is a lifelong habit, so continue to refine your budget and savings goals as your circumstances and priorities change.
Updated
David’s Answer
First step is to document your income. Such as paychecks, direct deposit, or allowances. After that, give yourself a budget on personal spending. Try to keep your spending around 30% of your income. Put every dollar you can aside. Limit your spending to something you need rather than want. If you can, open a savings account and put your money into it. It's easy to monitor.
Updated
Devin’s Answer
Hey Isaiah,
A good thing you can do is first determine how much you need for your expenses (rent, cell phone, groceries, etc). Subtract that from your income and what is left is your disposable income. Take a portion of that, and put it away and never touch it. Sometimes it can be good to put money in accounts that are difficult to withdraw from or have penalties for early or frequent withdrawal. Certificates of Deposit, Roth IRAs, Bonds, Mutual Funds accounts, and REITs are accounts that are good for saving money because they generally have a strong rate of return and are harder to withdraw from. It is also wise to diversify your savings, both for financial safety, and also as a way to capitalize on multiple ways to grow your wealth.
A good thing you can do is first determine how much you need for your expenses (rent, cell phone, groceries, etc). Subtract that from your income and what is left is your disposable income. Take a portion of that, and put it away and never touch it. Sometimes it can be good to put money in accounts that are difficult to withdraw from or have penalties for early or frequent withdrawal. Certificates of Deposit, Roth IRAs, Bonds, Mutual Funds accounts, and REITs are accounts that are good for saving money because they generally have a strong rate of return and are harder to withdraw from. It is also wise to diversify your savings, both for financial safety, and also as a way to capitalize on multiple ways to grow your wealth.
Updated
Kelli’s Answer
That's a fantastic question you've asked there! Saving money can be an exciting journey, and one of the most effective ways to do so is through automating the process. Begin by determining a comfortable amount to save every month, and set up an automatic transfer from your paycheck straight to your savings account. By doing so, you'll reduce the temptation to spend those savings!
Now, let's figure out how much you're capable of saving – assess your current expenses and identify areas where you can reduce spending. Then, envision your savings goals and determine their purpose. Once you have a clear target in mind, it will be easier to estimate the timeframe needed to achieve your goals. Remember, every step in this process brings you closer to financial prosperity. Keep up the excellent work, and good luck on your savings journey!
Now, let's figure out how much you're capable of saving – assess your current expenses and identify areas where you can reduce spending. Then, envision your savings goals and determine their purpose. Once you have a clear target in mind, it will be easier to estimate the timeframe needed to achieve your goals. Remember, every step in this process brings you closer to financial prosperity. Keep up the excellent work, and good luck on your savings journey!
Updated
Shayla’s Answer
That's a fantastic question, Isaiah! I truly believe that being mindful of your finances at an early age is an incredible step towards a bright and successful future. One great suggestion is to put any money you earn, whether it's from a job or an allowance, into a secure savings account - preferably one that accumulates interest over time, like a Capital One Savings Account.
Another idea is to review your spending habits in areas such as clothes, food, streaming platforms, etc., and explore where you can cut back or take a break for a month. I know this might be a bit challenging as a teenager, but with a little determination, you can achieve great results!
One more awesome tip is to collect all your spare change or even dollar bills in a jar or number money envelopes ($5-$10-$15-$20, etc,) and stash it away. You'll be amazed at how much money you've accumulated when the time comes to check it all!
As someone who is just a bit older than you, I am genuinely impressed and glad that you're taking the time as a high school senior to get serious about your finances. This responsible mindset will open many doors for you, Isaiah. Keep up the fantastic work and good luck on your journey towards financial success!
Another idea is to review your spending habits in areas such as clothes, food, streaming platforms, etc., and explore where you can cut back or take a break for a month. I know this might be a bit challenging as a teenager, but with a little determination, you can achieve great results!
One more awesome tip is to collect all your spare change or even dollar bills in a jar or number money envelopes ($5-$10-$15-$20, etc,) and stash it away. You'll be amazed at how much money you've accumulated when the time comes to check it all!
As someone who is just a bit older than you, I am genuinely impressed and glad that you're taking the time as a high school senior to get serious about your finances. This responsible mindset will open many doors for you, Isaiah. Keep up the fantastic work and good luck on your journey towards financial success!
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
6180
Answers
Updated
James Constantine’s Answer
Dear Isaiah,
Best Way to Save Money as a High School Senior
As a high school senior preparing for college, it is crucial to start developing good financial habits early on. Here are some effective ways for high school seniors to save money:
1. Create a Budget: Start by tracking your expenses and income. Creating a budget will help you understand where your money is going and where you can cut back on unnecessary spending.
2. Save on College Expenses: Look for scholarships, grants, and financial aid opportunities to reduce the cost of college tuition. Consider attending community college for the first two years to save money on general education courses before transferring to a four-year university.
3. Minimize Living Expenses: If possible, consider living at home during college to save on housing costs. Alternatively, explore options like living with roommates or becoming a resident advisor to reduce housing expenses.
4. Avoid Impulse Spending: Be mindful of your spending habits and avoid impulse purchases. Before making a purchase, ask yourself if it is a necessity or a want.
5. Take Advantage of Student Discounts: Many retailers offer discounts for students with a valid student ID. Always ask if there is a student discount available before making a purchase.
6. Use Public Transportation or Carpool: Transportation costs can add up quickly. Consider using public transportation or carpooling with friends to save money on gas and parking fees.
7. Cook at Home: Eating out frequently can be expensive. Try cooking meals at home and meal prepping to save money on food expenses.
8. Open a Savings Account: Consider opening a high-yield savings account to earn interest on your savings. Set up automatic transfers from your checking account to your savings account each month.
By following these tips and being mindful of your spending habits, you can effectively save money as a high school senior preparing for college.
Top 3 Authoritative Sources Used:
Investopedia: Investopedia is a trusted source for financial education and provides valuable insights on personal finance topics such as budgeting, saving, investing, and more.
The Balance: The Balance offers practical advice on managing money, covering topics like budgeting, saving strategies, banking, and investing tailored for individuals at different life stages.
NerdWallet: NerdWallet is known for its comprehensive financial guidance, including tips on saving money, choosing the right financial products, and making informed financial decisions suitable for young adults entering college or the workforce.
GOD BLESS YOU, RICHLY!
JC.
Best Way to Save Money as a High School Senior
As a high school senior preparing for college, it is crucial to start developing good financial habits early on. Here are some effective ways for high school seniors to save money:
1. Create a Budget: Start by tracking your expenses and income. Creating a budget will help you understand where your money is going and where you can cut back on unnecessary spending.
2. Save on College Expenses: Look for scholarships, grants, and financial aid opportunities to reduce the cost of college tuition. Consider attending community college for the first two years to save money on general education courses before transferring to a four-year university.
3. Minimize Living Expenses: If possible, consider living at home during college to save on housing costs. Alternatively, explore options like living with roommates or becoming a resident advisor to reduce housing expenses.
4. Avoid Impulse Spending: Be mindful of your spending habits and avoid impulse purchases. Before making a purchase, ask yourself if it is a necessity or a want.
5. Take Advantage of Student Discounts: Many retailers offer discounts for students with a valid student ID. Always ask if there is a student discount available before making a purchase.
6. Use Public Transportation or Carpool: Transportation costs can add up quickly. Consider using public transportation or carpooling with friends to save money on gas and parking fees.
7. Cook at Home: Eating out frequently can be expensive. Try cooking meals at home and meal prepping to save money on food expenses.
8. Open a Savings Account: Consider opening a high-yield savings account to earn interest on your savings. Set up automatic transfers from your checking account to your savings account each month.
By following these tips and being mindful of your spending habits, you can effectively save money as a high school senior preparing for college.
Top 3 Authoritative Sources Used:
Investopedia: Investopedia is a trusted source for financial education and provides valuable insights on personal finance topics such as budgeting, saving, investing, and more.
The Balance: The Balance offers practical advice on managing money, covering topics like budgeting, saving strategies, banking, and investing tailored for individuals at different life stages.
NerdWallet: NerdWallet is known for its comprehensive financial guidance, including tips on saving money, choosing the right financial products, and making informed financial decisions suitable for young adults entering college or the workforce.
GOD BLESS YOU, RICHLY!
JC.
Updated
Moses’s Answer
Every time you receive a salary or check, put away at a minimum 30% . On top of this, take your purchases more seriously and ask yourself if it will be beneficial to you and your future.
More so in todays age, subscriptions and small frequent purchases can add up and be detrimental to your bank account.
More so in todays age, subscriptions and small frequent purchases can add up and be detrimental to your bank account.
Updated
hector’s Answer
I think this article will give you very important information.
https://www.moneyunder30.com/kakeibo-the-japanese-budget-method-explained
https://www.moneyunder30.com/kakeibo-the-japanese-budget-method-explained
Updated
Britni’s Answer
I would say to limit expenses in ways that you can. If you have a job, I would try to allocate a certain percentage and save that money for the long run. At your age, it is very impressive that you're trying to be conscious of your spending!
Updated
Tierney’s Answer
Wow, Afrad and I definitely agree! Even if it isn't about cell phone service! ;)
I personally have 2 banks. One for checking and one for savings. I have my work direct deposit most of my check into my checking account and have $200 (or whatever makes sense for you!) each paycheck automatically deposited into my savings. It helps to never see the money! It also makes it harder to click and transfer in my banking app when they are at two banks.
I started at $40 each paycheck, but each time I got a raise or paid off a bill, I would adjust my amount accordingly. If I paid off a car loan, I would take a portion of that amount I was paying towards my car and add it to the auto-deposit amount. You won't miss it that way, plus you still give yourself a little bonus by not depositing all of it!
Good luck! -TB
I personally have 2 banks. One for checking and one for savings. I have my work direct deposit most of my check into my checking account and have $200 (or whatever makes sense for you!) each paycheck automatically deposited into my savings. It helps to never see the money! It also makes it harder to click and transfer in my banking app when they are at two banks.
I started at $40 each paycheck, but each time I got a raise or paid off a bill, I would adjust my amount accordingly. If I paid off a car loan, I would take a portion of that amount I was paying towards my car and add it to the auto-deposit amount. You won't miss it that way, plus you still give yourself a little bonus by not depositing all of it!
Good luck! -TB