The key to being a saving success is making it a regular habit. By saving early and often, you’ll set yourself up for a brighter financial future. Whether it’s a dollar a week or $10 a month, start saving now. A portion of the money you earn from allowance or pet sitting should be set aside for your various goals. These goals can be categorized as short-term, medium-term or long-term. You can reach your goals by saving your money over time.
|Short-term goals||Medium-term goals||Long-term goals|
|Art supplies||Tablet, smartphone, or laptop||College fund|
|Music lessons||Holiday spending money||A car|
|Sports equipment||New bike||Space camp|
The easiest way to save is to pay yourself first. That means setting aside a certain amount of money you earn and keeping it in a savings account. Remember to not save so much that you can’t enjoy an after school snack or activity with your friends, but not so little that you aren’t contributing to your savings every month.
When you open a savings account and deposit money into it, the bank will increase your savings by a certain percentage every year. This is called interest.
Compound interest is when you earn interest on both the money you’ve saved and the interest you earn. The average savings account interest rate is 0.06%.