Got Some Cravings for Savings!
Beginning to save in your teens can play a significant part in your future financial stability. All the goals that you may set for yourself, such as going to postsecondary school or buying a vehicle or owning a home…all of these will take financial planning now and actual money later.
Thankfully, financial institutions such as your Credit Union can assist you in making good choices for your savings. If you are putting money away for college or university, you may benefit from a Registered Education Savings Plan (RESP). These plans can grow faster than a straight savings account, because the government contributes to them as well. RESPs are a great place to deposit monetary gifts from grandparents and parents.
If you are looking to save for your first car, first home or a trip overseas, you should consider various types of savings accounts, savings bonds, term deposits and other investments. Some of these will take your money and lock it away for a set term or period of time. Others can be more accessible. Try not to make it TOO accessible. Temptation sometimes wins out over good sense when you can get at savings too easily.
The best way to achieve your savings goals is to decide on a percentage of your income that will be directed to savings and stick with it! A good number is always 10%, or $10 out of every $100. If you have a chance to save more than that you should do it before bills and commitments crowd in on your cash. If you earn $100 a week from a job, then $20 in savings is very achievable. If your income is more like $100 a month, then you will likely stick with the 10% figure.
Being a great saver doesn’t mean that you have to be rich to begin with – it simply means that you are learning skills with money that will benefit you later. Being committed to savings now can truly reward you in the future!
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