News

Don’t Eat Your Savings

 

October 26th, 2017

By George, Gianni, & Wendy

This blog post was written for teenagers by the teenagers in our Banking Program at the East Valley Institute of Technology (EVIT).

“Do​ ​not​ ​save​ ​what​ ​is​ ​left​ ​after​ ​spending,​ ​but​ ​spend​ ​what​ ​is​ ​left​ ​after​ ​saving.

-Warren​ ​Buffett.

A lot of our friends at school have part-time jobs, and it seems like they spend most of their money on fast food. While I am sure it tastes good in the moment, it doesn't help you reach your goals or allow you to do fun things with your friends and family. Did you know that the average American spends over $12 a day on fast food. This builds up to over $84 a week. If you're working part-time for minimum wage like most high school kids are, that doesn't leave much money for saving or for anything else. Here are some tips on how to save money, eat well and be able to do fun things.

1) Indulge less
If you cut down the number of days you eat fast food from 5 to 3, you can save the money you would’ve spent during those two days for better things such as a car, or for college.

2) 50/50
A simple trick to help you save is to save the same amount of money as you spend. If you pay $15 a week at Dutch Bro's, then put $15 a week in your savings account. Doing this can help you to be more conservative with your money and allow you to enjoy your coffee guilt free.

3) Budget
Many people believe that budgeting makes them give up doing fun things, but in reality,  it helps you decide how much you can spend on food that week, and have enough money to do the fun stuff. It does take some work though, and it can consume a little bit of your time, but the pros greatly outweigh the cons, and you will have control of your money. If you do not use all of the money from your weekly budget, then you can carry that over to the next week or put it into savings. Having good budget habits now will help you later when you have bills like cell phones, gas, and car insurance.

4) Treat Yourself
Although you want to plan and save, it’s always okay to treat yourself, just make sure you don’t cheat yourself. One thing you can do if you are craving something is to set a goal for yourself. If you don't splurge all week, then you can treat yourself after you succeed. By treating yourself once a week, you will save so much money; you can use that money to go out with friends, go on dates, or even shopping.