An article for young members
Learning how to save money is important, whether you have a lot or a little. These tips will help you get started.
Step 1. Start at the finish line
To begin, start at the end. Yes, that sounds weird, but you need to know what you’re aiming for before you get started. Are want to buy a new bike? Maybe you want to save for a car? Be clear in your mind about your goal. Post a picture of it where you’ll see it every day to remind yourself what you’re saving for.
Step 2. Keep track of your spending
A lot of adults panic at this step, but it’s not hard. Begin keeping track of everything you buy in a notebook, adding up the total at the end of the week. You can create a budget in five minutes using either a Banzai Budget Coach or if your family has the Armco cuEARN app, you can use the budget module.
Step 3. Make a plan
To save successfully, your expenses should not be greater than the total amount you want to save each week. Let’s say you want to save $35 every month for college and your allowance is $15 a week. That means you’ll want to save $8.75 each week. But if you spend $10 every week on fast food or snacks, that’ll leave you with only $5 to put into savings. If you spend less than $6.25 (15 – 8.75) per week on snacks and put the rest in savings, you’ll make your monthly goal.
Parents – Armco CU has a youth savings program to help your kids learn to save. Not only do they earn interest, but they’ll have the opportunity to earn Armco Bucks when they learn about finances. Create a safe banking environment by linking your account to the youth account with the cuEARN app.