5 answers
Gissel
Student
Aurora, Colorado
1
Question
Asked
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What is a good way to keep track of my money?
I'm going to the 9th grade and I keep getting told I spend too much money, when the most I've is 20 dollars at most, what should I be spending my money on and how should I be spending money?
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5 answers
Rebecca Tang
Banking
1512
Answers
Hong Kong
Updated
Rebecca’s Answer
Thank you for your question. It is good time for your to learn on financial management.
Firstly, you may need to open up a bank account. I am not sure you can open an account solely at your age. Otherwise, you may need to open ajn joint account with your parents.
Also, you need to distinguish what you need and what you want.
What you need is the expenses you must have, e.g. Your transport expenses going to school, you lunch in school, etc.
What you need is something you would like to have but not mandatory
Below are my suggestions :
1. Keep the amount on what you need every month to support your daily expenses
2. Divide the remaining into 2 halves : 50% you keep it as your pocket monies, 50% you put it into your bank account
3. If you have anything you want to buy which costs considerable amount of monies, you can consider to use your savings after some time.
Hope this helps! Good Luck!
Firstly, you may need to open up a bank account. I am not sure you can open an account solely at your age. Otherwise, you may need to open ajn joint account with your parents.
Also, you need to distinguish what you need and what you want.
What you need is the expenses you must have, e.g. Your transport expenses going to school, you lunch in school, etc.
What you need is something you would like to have but not mandatory
Below are my suggestions :
1. Keep the amount on what you need every month to support your daily expenses
2. Divide the remaining into 2 halves : 50% you keep it as your pocket monies, 50% you put it into your bank account
3. If you have anything you want to buy which costs considerable amount of monies, you can consider to use your savings after some time.
Hope this helps! Good Luck!
I am really grateful you took the time to answer this question.
Gissel
Jennifer Fischer
Product Manager
27
Answers
Dallas, Texas
Updated
Jennifer’s Answer
It's great to see you asking such a significant question, as it demonstrates your maturity. At times, folks might criticize young people for spending their money on food or treats. Have you talked to the person who made that comment?
When it comes to deciding how to spend your money, it really depends on the individual. If I could give you any friendly advice, I'd suggest making sure your spending aligns with what matters most to you. For me, this means putting money into savings first, taking care of all my bills, and then using any remaining funds for the things I enjoy.
When it comes to deciding how to spend your money, it really depends on the individual. If I could give you any friendly advice, I'd suggest making sure your spending aligns with what matters most to you. For me, this means putting money into savings first, taking care of all my bills, and then using any remaining funds for the things I enjoy.
Thank you!
Gissel
Shequanda Young
Finance Manager
3
Answers
Huntsville, Alabama
Updated
Shequanda’s Answer
It's never too early to learn how to save and budget your money. A good way to save is to set aside a certain amount of money from the income that you receive each week or month. While you're in high school, you could save money to purchase new shoes, electronics, Christmas gifts or whatever you choose. Once you figure out what you want to save for, make sure not to touch the savings until that time.
When you have a job and begin to have bills to pay, the best option is to create a budget. I use Microsoft Excel for my budget - its a simple spreadsheet that lists all of my bills and the amount of money that I receive from my job. As you track your expenses versus your income, you can easily identify items that you are spending the most money on as well as things that you may need to cut back on. One important part of this is to include everything that you spend money on - fast food, clothing, entertainment etc.
When you have a job and begin to have bills to pay, the best option is to create a budget. I use Microsoft Excel for my budget - its a simple spreadsheet that lists all of my bills and the amount of money that I receive from my job. As you track your expenses versus your income, you can easily identify items that you are spending the most money on as well as things that you may need to cut back on. One important part of this is to include everything that you spend money on - fast food, clothing, entertainment etc.
Daniel Maynes
Credit Manager
188
Answers
Dallas, Texas
Updated
Daniel’s Answer
Hi Gissel!
The very first thing I would do is make yourself a monthly budget. There are many good apps/online tools you can find online. Many online tools can help you categorize certain expenses and they usually have graphics that can help you visualize your progress. You can also do it the old fashioned way on Excel.
After you set up a budget the next best thing you can do is sleep on it and really ask yourself if you need the item. I would encourage you to really think through what you will use the item for and for how long. Also, think about the big items in life you need to save for such as a house, possibly kids, retirement, etc. You are never to young to start saving for these big ticket purchases in life.
The last thing I would do is don't compare yourself to others. One of the most dangerous things is comparing yourself to people and thinking if they can have it so should I. Don't fall for that trap of "keeping up with the joneses" because comparing yourself to people and their things is not a good idea. It will only lead to misery and feeling like you are failure.
Hope some of the above provides insight.
The very first thing I would do is make yourself a monthly budget. There are many good apps/online tools you can find online. Many online tools can help you categorize certain expenses and they usually have graphics that can help you visualize your progress. You can also do it the old fashioned way on Excel.
After you set up a budget the next best thing you can do is sleep on it and really ask yourself if you need the item. I would encourage you to really think through what you will use the item for and for how long. Also, think about the big items in life you need to save for such as a house, possibly kids, retirement, etc. You are never to young to start saving for these big ticket purchases in life.
The last thing I would do is don't compare yourself to others. One of the most dangerous things is comparing yourself to people and thinking if they can have it so should I. Don't fall for that trap of "keeping up with the joneses" because comparing yourself to people and their things is not a good idea. It will only lead to misery and feeling like you are failure.
Hope some of the above provides insight.
Thanks for the advice.
Gissel
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity.
3798
Answers
Gold Coast, Queensland, Australia
Updated
James Constantine’s Answer
Dear Gissel,
Here are some practical steps you can take to manage your finances more effectively:
Budgeting: Establish a budget to monitor your earnings and outgoings. It's a helpful tool to see where your money is being spent and pinpoint areas where you can reduce expenditure. A simple spreadsheet or a budgeting app can simplify this task.
Establish financial objectives: Decide on your financial aspirations, like saving for a particular item or creating a safety net of funds. Clear objectives will keep you focused and guide your spending choices.
Prioritize your expenditures: Determine what matters most to you and allocate your spending based on that. Think about reducing non-essential costs, such as dining out or leisure activities, to allocate more resources to your priorities.
Monitor your spending: Record every purchase, regardless of its size. This will help you spot trends in your spending habits and make necessary adjustments.
Save before you spend: Prioritize saving by reserving a part of your earnings before you begin spending. You might find it helpful to set up automatic transfers to your savings account.
Resist impulsive buying: Pause and reflect before making a purchase, particularly if it's unplanned. This will help you avoid impulsive buying decisions that you might regret later.
Educate yourself: Acquire as much knowledge as you can about personal finance, including budgeting, saving, and investing. The more informed you are, the better prepared you'll be to make wise financial choices.
Remember, occasional self-indulgence is fine, but moderation is key. By adhering to these guidelines, you can cultivate sound spending habits that will benefit you now and in the future.
Stay blessed!
James Constantine.
Here are some practical steps you can take to manage your finances more effectively:
Budgeting: Establish a budget to monitor your earnings and outgoings. It's a helpful tool to see where your money is being spent and pinpoint areas where you can reduce expenditure. A simple spreadsheet or a budgeting app can simplify this task.
Establish financial objectives: Decide on your financial aspirations, like saving for a particular item or creating a safety net of funds. Clear objectives will keep you focused and guide your spending choices.
Prioritize your expenditures: Determine what matters most to you and allocate your spending based on that. Think about reducing non-essential costs, such as dining out or leisure activities, to allocate more resources to your priorities.
Monitor your spending: Record every purchase, regardless of its size. This will help you spot trends in your spending habits and make necessary adjustments.
Save before you spend: Prioritize saving by reserving a part of your earnings before you begin spending. You might find it helpful to set up automatic transfers to your savings account.
Resist impulsive buying: Pause and reflect before making a purchase, particularly if it's unplanned. This will help you avoid impulsive buying decisions that you might regret later.
Educate yourself: Acquire as much knowledge as you can about personal finance, including budgeting, saving, and investing. The more informed you are, the better prepared you'll be to make wise financial choices.
Remember, occasional self-indulgence is fine, but moderation is key. By adhering to these guidelines, you can cultivate sound spending habits that will benefit you now and in the future.
Stay blessed!
James Constantine.