I'm absolutely horrible when it comes to saving. Any suggestions?

Question

I had a part time job. During that time, I found out how nice it was to have my own money. I quit in October and have officially run out of money.. nothing was saved for University texts or tuition. I have a Health Internship this summer and will earn a flat fee of 2000 dollars - is there any way to keep the money from ever reaching my hands? I've suggested my parents set up a savings account from me that I can't access, but there might be better ways that actually teach me to save, instead of constantly spending on frivolous things.. I hate that I do, but I can't seem to stop. Any suggestions that could help me save for my future? I'm 16 right now, and have an (empty) chequeing account with my bank.

Answer 1

What I'd suggest is taking a good portion of the money and opening up a CD like a couple other people have suggested. Also, you can go to your bank and set up an allotment from your checking into savings. Every time you get paid (this works REALLY well if you have automatic deposit) have money automatically allotted (the bank moves your money for you) into a savings account. Then, "pretend" that that money doesn't exsist. It may be tempting at first, but if you don't see it in your checking and just completely ignore your savings it'll work very VERY well!! And, you'll learn some self control and be able to dip into if/when you want or need it!

Answer 2

The saying is "pay yourself first" which means that you determine how much you need to save and that money goes into savings right off the top. Why not have the money go into an account via direct deposit? Then, you won't actually "see" it. It will be in the account, ready for school. You can also get a joint account. Make sure that it says "and" rather than "or" so that it requires two signatures to get the money out. Good luck to you.

Answer 3

I think you have a great idea of having your parents set up a savings account that you have no access to.

I had the same problem so I set up a savings account with my investment company (where my 401k is) instead of with my back where my checking account is. When it was at my bank, access to the money was too easy.

Now it takes 2 business days to do a funds transfer so I think twice about doing it. In no time, I saved a lot of money. The more I save, the more I want to save.

I now treat my savings account deposits as one of my bills. So while I'm paying bills I also make a transfer to my savings account.

Once you see that balance growing, you won't want to spend it. Good luck.

Answer 4

Use Microsoft Excel or Open Office(freeware) to set up a spreadsheet to monitor your expenses down to the last penny. It will be educational and the hassle of recording everything will help dissuade you from making frivolous purchases. You should also browse the web and local libraries and bookstores for literature on the evils of consumerism. Try reading books about written during old times when people didn't have all the junk which is now available. It might help you distinguish between what is important and what is frivolous. Learn the locations of "impulse sales" at stores and avoid them.

Answer 5

One of the hardest things to do is savings. When we are not rich and we work for your money, it's hard, I know. What you can do is to have 2 accounts, one savings and the other one checking. The checking acc. you can use your ATM/Debit card and get your payments at the store like Visa/ATM but only with the benefits of a Visa but it's your own money, you won't pay interest at all, because is your money, Budget yourself by what you have only. The same bank can automatically transfer an X amount to your savings, you can start low and then go little higher later. The money in the savings don't ask for a ATM card, consider this money dead. Use it under extreme emergencies, ONLY. Don't set any goals, simply get it fatter and fatter. You are at a wonderful age to start, trust me you won't be sorry when you get older. If you receive money for your birthdays, deposit it in your savings. You can pull money out of savings by going directly to the bank, and believe me, be lazy about it, so you won't go. It's hard but when you discipline yourself and yo start seeing your money grow, you feel safe. Ask the bank not to send you statements from savings at your home, you can always check your direct deposits over the phone. Carry small cash with you, cause your cash in in your debit card. And here goes the golden rule: when buying stuff ask yourself and be very honest: : Do I want It or Do I Need it? this will help you not to buy junk. Trust me, you won't be sorry. Don't tell anyone about this savings, because funny as it sounds, they will ask you for "loans" Don't do it.

Answer 6

I read this one suggestion recently that actually sounded like a good idea. If there's something really important you want to be saving for, take a picture of it with your cell phone and every time you feel tempted to spend money on something frivolous, bring the pic up and take a good hard look at it. Who knows? It might work.

Answer 7

It is very wise of you that you want to save and mature thinking. Unfortunately you are allowing your immature side not to save. It takes maturity to save the money in an account and immaturity to blow the money on useless frivilous junk. It is your responsibility to save not your parents although you are a minor so I suppose your parents could help you by putting it into an account that you cannot access. Therefore have two accounts one for fun money and one for the future. good luck p.s. due to your age be sure to have fun money it is so important to enjoy being young. I believe it's good to get into good savings habits but you are young and should enjoy being young.

Answer 8

What I do is get 100 dollars of every paycheck(i get paid every 2 weeks) and get it put into my internet bank account which is ING. It pays very good interest that I would not normally get in a bank savings account. I have set it up so that it automatically gets taken out as soon as I get paid.

Answer 9

I would suggest putting the money into a CD (certificate of deposit). You will get a great interest rate and the penalties for withdrawing the money early should keep you from touching it.