Practical Ways of Saving Money

1. Write down your goals:

In practicing how to save, you might want to start with establishing some goals. Ask yourself, what do I want to save for? Do I have anything specific in mind? Maybe you want a new phone or a new outfit, you intend visiting a friend or attending a program and you desire to pay your way through, you want to get a loved one a gift, or you simply just want to save for the future. Whatever it may be, consider writing down each goal and towards saving for each of them. Try saving for one at a time and cross off each goal as you complete it. For accountability, you can consider involving an older trusted person in your saving process. You get to keep the money yourself but you have a trusted voice to talk your goals and options over with. Someone who will cheer you on when the going gets tough (because it will), and who knows he/she may decide to pitch in depending on your level of discipline and commitment.

2. Have a Savings Jar or Piggy Bank:

Get a bottle (the size doesn’t matter) but it should be big enough to house different naira notes, you could also go shop for a piggy bank. It should also be sealed in a manner that you can only make deposits without making withdrawals. Make it a habit of putting the left-over cash from your expenses each day or week; you can also decide to designate a given amount of money to be paid into your “temporary savings account” each day or week. It could be ₦50 per day or ₦100 per week, whatever you choose but ensure you deposit something in your “account” each week. This will help you practice discipline and responsibility at home or in school.

3. Keep a spending diary:

Keeping a diary or journal of your spending will help you understand the importance of money. It will also help you to contribute to your piggy bank or savings jar and will show you your spending pattern so that you know those things that consume the bulk of your allowance. Make it a habit of going through your diary weekly, if you go through your diary and discover you are spending a lot on data plans and junk foods, you can cut back and channel the extra money towards your savings.

4. Find a means of making money:

No matter your age, there are always jobs out there to help you boost your savings. You can help neighbors with chores, baby sit for friends and relations, wash cars, do retail sales of household products etc. Learning to work at a very young age can be very rewarding; it encourages independence and assists you in gaining money management skills. Once you have cash coming in, you are encouraged to keep saving even more to meet your set goals.

5. Budgeting:

Learning how to plan your finances can be very beneficial as a teenager. A budget also known as a “spending plan” is an outline of anticipated income and expenses that can be used to track actual cash flow and set spending goals. Making a budget gives you an important financial tool that can assist you in planning your expenses, cutting down on spending, saving for the future and in developing lifelong money management skills.