Managing your money doesn’t have to be boring or complicated. Spending smart means having more money to spend on the things that are really important to you. The one thing that can throw you off track when you’ve set a savings goal is the temptation to impulse spend on other stuff. Here are some tips to combat that dreaded impulse itch.
- Get into the habit now
- Make a plan
- Set a realistic budget
- Track your spending
- Use your student discount
- Don’t give in to peer pressure
The great thing about getting into the habit of managing your money and saving now when you are young and it’s relatively easy, is that you have time on your side. It’s important to recognise the value of money and understand it’s not an unlimited resource. Having the freedom to manage your own budget and savings goals can teach you really valuable financial lessons that help you manage your spending like a pro.
You are far more likely to waste your money or impulse spend if you don’t have a plan in place. Think about your goals, big and small. Set yourself short, medium and long term goals. Do you want to be able to go to a festival this year? Do you want to be able to drive and own a car before you go to college? Do you want to travel after college? By putting a plan in place now and working out what your savings goals are, you set yourself up for success.
Once you’ve identified your goals, you need a budget. A budget will give you great visibility on the money you’re getting i.e. your income and the money you’re spending i.e. your outgoings. Remember the 50:30:20 rule! You should allocate 50% of your income to needs, 30% to wants and 20% towards savings. By creating a budget you are making sure you have enough money to cover your needs like travel costs, food, rent (if you’re already living away from home), your wants like shopping and cinema trips and also leaving enough money to meet your savings goals like that big holiday after school.
Keeping to a budget is harder than it sounds, for everyone. In today’s world where contactless cards and mobile payments are the most common ways to pay for things, it can be easy to lose track of spending. Spending €2 here and there on lunch or coffee is easy, but when you track your spending and see it adding up over a month or two, you could be shocked to see just how much you’re spending. Using an app or a budget planner that tracks your spending can really show you what you are overspending on and allow you to manage your spending better in the future.
There are many advantages to being a student, including student discounts. Who doesn’t love a good discount! Lots of retailers, restaurants, and travel operators offer discounts for students, they know your money is valuable and hard earned so shop around, and don’t be afraid to ask for student discounts. By taking advantage of these discounts you are being Money Smart with your spending.
Life as a teen comes with many pressures. Whether it’s keeping up with current fashion trends or grabbing lunch with friends, you may be tempted to overspend often which could ultimately affect your goals. Don’t feel bad about not having the latest gadget or asking your friends to hang out at the park instead of dining out. True friends are happy to hang out with you regardless of what you’re wearing or where you are.
Remember, saving money towards a goal makes achieving it all the more rewarding and means you’re building great financial habits that will last you a lifetime.
