As they say, it's never too early to start anything. That's applicable when we deal with our finances, too. As you grow older, your parents will be trusting you with bigger things—that includes your allowance. Before you start grilling your parents and demanding a bigger amount from them, try and manage what you have first.
To help you, we found this helpful video of Chelsea Fagan and Lauren Ver Hage of The Financial Diet where they talk about what you can do to be better at handling your money starting today.
Below, we listed Chelsea and Lauren's tips and tweaked them a bit so you can find them easier to do.
1. Download an expense-tracker app. This can help you see your spending behavior and adjust the next time your parents give you your allowance.
2. Pay yourself first. Set aside some of your allowance for your savings, instead of settling for what's left of it.
3. Use your credit card wisely. Most of you probably have credit card extensions, but that doesn't mean that you can maximize the credit limit and use it without a care in the world. Train yourself to help your 'rents pay for what you spent for. This way, you'll learn how to take responsibility for your own expenses.
4. Start saving a certain amount and be consistent. You can take off P200 from your monthly allowance, and save that amount of money. If you're consistent, that P200 will grow to P2,400 in a year and to P12,000 in five years.
5. Let go of something you really want to buy. Whether it's a cup of coffee or a bottle of juice, let go of that expense. Feel good about it and make that a habit. It may be hard at first but as Chelsea said, consider it an investment to your future.
6. Open a bank account. Start saving officially! There are actually types of savings accounts that only require a small amount of money to maintain. Go to the bank nearest you and start asking questions!
7. Buy all the things you need at once. For school, you might need pens, pad papers, binder fillers, folders. Estimate how much or many of those you'll be needing in a month and buy all of them at once, so you won't keep returning to the store and feel tempted to buy little things you don't really need.
Happy saving, Candy Girls!
Got school problems you want us to help you with? Leave a comment below or tweet us @candymagdotcom. We'll try our very best to help. :)