Sometimes I wonder if all young people understand the importance of being smart with money. Instead of wondering, I wanted to share a few things that can help us be money savvy.
If you’re all like me, I like simple. Starting small is the best way I can think to help. These are three little things we all can do in order to stretch our money a little farther.
1. Reward Programs Are Your Friend
If the grocery store has a rewards program, sign up for it. Almost all retailers have rewards programs as well, use them! Yes, you may get a few more emails a day, but this is money we’re talking about, isn’t it worth it? Every little bit counts.
Giant Eagle is a good example of a smart rewards system. They sell grocery items, healthcare, retailer gift cards, etc. Giant Eagle advertises fuel perks at GetGo for spending a certain dollar amount or purchasing specific items. This is something just about every person can and should use. People can’t get around without putting gas in their vehicles, so why not save $0.20 per gallon while getting the groceries and gift cards you need? Who cares if you’re the person in line who has to go through 20 different cards to find this stores’ reward card?
2. Save
Saving a portion of each paycheck is a smart way to save money, especially if you have a trip or big purchase coming up. By planning ahead and saving early, the impact of the expenditure won’t be so bad. If you put the money aside right away, it will be like you never had that money to spend in the first place!
Many banks offer holiday club and vacation club accounts. These are accounts that you open aside from your regular saving and checking accounts. Each month or week, a specific amount is transferred from checking to the club accounts. You will not be able to get into this money until a specified date, typically November for holiday, and May for vacation. Also, these accounts are named for the season, but you dictate how you spend your money. I have a holiday club account which I will be using to purchase books in the spring semester of college. Having the money taken out automatically, I never miss the money.
There are also certificates of deposits (CD) which involve more time. Typically, a person gives money to the bank for a specified amount of time in exchange for a higher rate of return than a savings account will bring. If you know you have extra money that you won’t need for a few years, sit down with your bank and talk about obtaining a CD. Set one up now for the year you graduate college to help with a down payment on an apartment, car, or rewarding trip for yourself.
A professor of mine always tell his students "Money only grows bigwhen it grows old, so start saving now!"
3. Opportunity Cost Matters
Opportunity cost is the time or money forgone in order to have something else, for example, keeping it money related, if you spent $50 on a T-shirt for yourself, you no longer have that $50 to put toward rent or your car payment. Everything has opportunity costs attached. Considering what else your money could be doing for you is an easy way to save. Figure out how to best spend the money you do have and you’ll see it go farther.
I hope you put these three small tips into play in your life. Everyone will tell you to save, save, save, but you need to know how. Stating small and with simple ideas will hopefully inspire you to research bigger and better ways of spending and saving.
Tell me how you save, spend and your money saving secrets! Have questions, just ask, I’d love to share more with you!
