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How can I start saving with sporadic allowance money?

I am a high school senior getting ready for college and I want to begin to build healthy financial habits. I would like to save for everyday expenses in college and if possible, my college tuition, I don't have a steady income yet as I don't have a job, but I get allowance money at times and I don't know how to manage all of it. I would like any tips that helped you guys save for college and are still helping you guys save now.

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Wendy (Uyen)’s Answer

Great to see you plan ahead Joarie! No matter how much money you receive, whether it's allowance or paycheck, one of the best ways to save is think if it as a pie graph and percentages. For example, 20% of your monthly income should be saved and can be 10% go to investment, 10% go to a money market or high yield savings account earning at least 2% interest. The remaining 80% of your paycheck can be for tuition, books, rent/room/board, utilities, cell phone, internet, gas, credit card bill, etc. Then whatever remaining can be your "fun" money for travel, shopping, etc. I usually only put aside $50 per month for shopping and it adds up where you can buy something each season or save for something bigger. I find setting up auto transfers for savings money for your bank accounts is very helpful, so you set it and forget it and whatever is remaining in your bank account is what you can spend. For example, you earn $1,000 per month, set up an auto transfer $200 each month to your investments, $50 each month to a separate savings for "fun" money, the remaining $750 can be your expenses.

Hope this is helpful!
Good luck to you Joarie!
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Ginny’s Answer

You're already making great progress by thinking about how to save money now.

Since your income isn't steady, opening a bank account might not be possible right away. If that's the case, find a safe spot at home to keep your money, like a hidden place in your room, to avoid spending it and to keep it secure. Decide how much of your allowance you need for essentials, like school supplies or lunches. From what's left, try to save 10-25%—college can be costly! Do what works best for your situation.

To stretch your savings further, consider taking dual credit courses in high school and starting at a community college to complete basic classes. Just make sure the credits will transfer to the colleges you want to attend. Good luck with your future savings!
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Karen’s Answer

You've taken the first step in thinking about a plan. Open a savings account at your local bank and promise yourself that you will deposit $x each time you get an allowance or a gift of money. It can be any small amount but it will add up.

You might also consider doing odd jobs for your neighbors or relatives. Make a list of all the things you can do like running errands, last-minute child care, washing windows, pet sitting, etc. and decide on a reasonable hourly rate. Create a flyer and give to all the people you know.

With every good wish and many blessings!
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