Do you have any advice for saving money for a high school senior?

Question

I'm a senior in high school and I work part time and make about 50 to 100 dollars a week. I also get 500 dollars a month from my dad (weird family situation). And I only pay for my cell phone and lunch money at school which comes out to about 100 dollars a month (both of them combined). But I feel like im addicted to spending money. I go to wal-mart a lot or to other stores. I have plenty of money in my bank account for a girl my age but i know i should be saving more of it then spending. I'm entering college next year so I want to try to break these habits now. How can i get the self control not to shop when i have money but I want to save it for college and eventually a new (well, used) car. Please give me personal experiences, websites, advice, tips, anything!

Answer 1

I estimate that you're taking in an average of over $190 per week, or $825 per month. I suggest the following:

1) Open up a separate savings account with $100 - call this your "car" account. Deposit 50% of everything you take in; do not delay in depositing - split everything you receive 50/50, and put it aside until you can make the deposit.

2) Take half of the other half, or 25% of the total, and deposit it into your existing savings account.

3) You need to save about $100 of what's left for your cell phone and lunches. That leaves you with over $100 per month to blow on whatever you want. Go ahead and do that - spend $100 on whatever you want every month. But that's only after you've paid yourself first for savings, and once it's blown for the month, don't spend any more until the next month.

If you learn to pay yourself first, you'll automatically figure out how to control the rest of your spending. I've got two kids, a mortgage payment, lots of other bills, etc., but I still pay myself 15% of my gross pay before I pay my first bill. It's a good habit to get into, and you'll be amazed at how much you can save with very little effort. Plus, once you have no restrictions on what's leftover, you won't feel the least bit deprived. I had to scrimp to buy my first car, first condo, etc., but I now own several properties. And I still was able to have a life, going out with friends, seeing movies, and doing the things you normally do to have fun. Fun doesn't always cost a lot. I still like a lot of free things like going to the beach, riding bikes, etc.

If you stick with this plan, you should have over $5,000 to buy a car with in 12 months, in addition to your regular savings account. Good luck.

Answer 2

What worked for me was everytime you get paid, take 50% of it and act like you never got it. So every week take 50$ and put it in a separate bank account, and never look at the ledger for that account. Before you know it you will have accumulated quite a bit of money.

Answer 3

Similar to what the person above suggested, open what is called a "Christmas account" at a bank or credit union.

This account only allows you to withdraw the money during a specific timeframe each year. You can deposit as much as you want.

Similar is a "vacation club" account.

Google the quoted terms above to find out more!