Save Some Green During Your Summer Job
A summer job can help keep you focused and active while earning money for your future. Keep in mind how important it is to budget and save in order to enjoy the benefits of earning, and to be able to afford to live comfortably AFTER summer is over.
· Need vs. Want — Although it may be tempting to spend every penny that you earn, it’s important to understand and acknowledge the difference between a want and a need.While it is ok to spend some money on our wants, it is important to learn self control and discipline in the form of financial planning.
· Set up TWO accounts at your credit union — Open one account with debit card access then open a second savings account you DON’T have card access to, so you are not tempted to spend your savings.
· Create a Simple Budget — Pay yourself first!Followingthe 10-10-80 Rule will make this easier.Separate each paycheck by Saving 10%; Giving 10% and then live off the remaining 80%.
· Motivation to Save — Determine your savings goal (buying a car, saving for college, or buying your first home), create a timeline for your goal and calculate the amount of money that you need to save each month in order to reach it. Setup with your credit union to have that money automatically transferred to a separate savings account every time you get paid.
· Name that Second Savings Account — Simply naming your second savings account -- such as "College Fund" or "Car Savings" will help you stay focused on your goal and help prevent you from dipping-in to your hard-earned savings.