Getting started: Making and saving money
Once you start to understand money, you can easily start dreaming of all the money you
can make. But before you can start saving, you’ve gotta have money to invest.
There are two good ways to gather your much-needed moolah:
- Make more money
- Save more money
Here are a bunch of ideas that can help you do both.
Making money
Most young people get their money through an allowance. Not every kid gets an
allowance, depending on their parents’ financial situation and beliefs. Whether you
get an allowance or not, here are some more ways to get money:
From your family
Your parents might pay you for doing chores around the house or for getting good grades.
You could also offer to do some chores for your siblings in exchange for part of their
allowance. Also, check with grandparents, aunts, uncles and family friends.
They may have odd jobs that they would be willing to pay you for.
Selling things
If you have a lot of things around that you don’t need or want anymore, consider selling
them. First of all, be sure that you’re really ready to part with these things so
you don’t regret it later. You could hold a yard sale or offer to sell other people’s
knickknacks for a small fee. You could also sell things on eBay if you’re computer
savvy.
A job
This is perhaps the most obvious way to earn money, and teens frequently land part-time or
full-time summer jobs. There are many jobs that you can find or create that don’t
involve fast food or babysitting. You might even find clerical or assistant
work that relates to what you want to do as an adult.
Pet-sitting
When someone you know goes on vacation, they may need someone to look after their
pet(s). Also, some people end up working long days and need someone to walk their
pets during the day.
Working for your parents
If mom or dad owns a business, you might be able to help them out. Your parents are
also a great way to find a job. Ask them to check with their company to see if they
have any part-time openings. You can also check with relatives and family friends
about job openings at their companies.
Camps
Try getting a job at a summer or school camp in your area. You can work with kids,
tend the grounds, prepare food or do any number of odd jobs. Also, there are
after-school programs where you can help teach and lead young children.
Jobs matching your interests
Try to find a job that matches your interests or skills. If you enjoy working with
children, see if any daycare centers need help. If you like the outdoors, check with
your local parks department. If you like swimming, look into becoming a lifeguard at
your local pool or YMCA. If you like movies, try finding a job at a movie theater.
If you like golf, try caddying at a course near your home.
Mowing lawns, raking yards, shoveling snow, gardening
Start your own landscaping company. Once your customers know you and the good work
you do, they may use your services during other seasons.
Be crafty
If you enjoy making items, like jewelry, paintings, photographs, etc., consider selling
them—perhaps on eBay or to friends, family and neighbors.
Deliver your local newspaper
This is a fairly easy job for most young people to work into their schedules.
Use your skills
Think about what you're good at and try to teach others. You could offer piano
lessons, Spanish lessons or any number of things. If you're a good student, think
about tutoring other students and peers. If you’re an entertainer, consider working
children’s birthday parties, weddings or other events. If you’re a writer, many
newspapers will pay for freelance student articles. If you're good with computers,
you can help people set up and use their computer. You can also show them how to use the
internet, digital photography software, and any other programs you understand well.
Recycle
Though it may not seem like a lot at 5¢ a can but collecting cans can really add up.
Gather cans from family and friends. Many supermarkets offer can return machines that pay
you when returning cans.
Volunteer
Volunteering can often turn into a paying job. Try to do something you’re interested
in rather than the first thing that comes to your mind.
Once you've made some money, save some
There is no set amount that you should save or spend. You could save 100% of what you
make, but that wouldn’t be much fun. However, spending everything you make isn’t very
rewarding in the long run. Here's a few easy ways to save:
Save before spending
Take your savings out as soon as you get your paycheck or allowance. This way you’re
paying yourself first by saving and then you can have fun with the rest. Be sure to keep a
savings record so you know when you've reached your savings goals. Our
On-Line Banking can help you keep
track of your deposits and withdrawals.
Negotiate with your parents
This may or may not work for you, but it's worth a shot. See if your parents will
match you savings, in order to encourage good saving habits. For example for every
dollar you save, your parents could contribute 50 cents. This will really help your
savings take off.
Tips from teens on saving
Here are some helpful suggestions from real teens.
"When you buy something, only use dollar bills. If you buy a magazine for $3.25
and you pay for it with a $5 bill, you'll get back $1.75 in change. Put the dollar
back into your purse (or pocket) and keep the 75 cents separate. Only spend the
bills, not the coins. Put all the coins in a jar for savings. That way you'll
always be saving a little."
"I deposit my money into a bank instead of my wallet, so the money is not there and
I have to take an extra step to get to it."
"Take only what you need for spending, and put the rest of it somewhere that's
difficult to get to, such as long-term CDs
or a money market account. Making it
inconvenient to get to your money might help you avoid the urge to spend it all. Also,
decide exactly what percentage you will spend and what you will save, and follow your
own rules."
"Carry very little money at all times. You can't spend money if you don't have it
on hand. A candy bar would be nice, but without a dollar, you can't get it. Little
things like that really add up quickly."
"I like to see the number of shares of stock I own going up, too. That's a great
motivator."
"When considering a major purchase, wait a week or so, at minimum. This will help
you make sure you still want the item, and, as an added bonus, it might go on sale."
"Start small. When I first started saving to invest, I was saving $1 to $2 each day,
so by the end of the month, I had $30 to $60, depending on what kind of month it was."