A Teen's Advice to Her Peers: Start Saving
by Nakeya Mitchell, High School Intern 2006-2007
Over the last school year, CAAB has been fortunate to have a talented intern from the Urban Alliance Foundation working alongside our staff. A recent graduate of Anacostia Senior High School, Nakeya Mitchell is saving for her education in an Individual Development Account (IDA)—a special type of savings account where her contributions earn a 3:1 match—and taking financial education and other courses through Urban Alliance. This fall, Nakeya will be headed for college, but in the meantime, she has this advice to share with other teens who may soon be receiving their first paychecks as summer interns to get them started down the road to savings.
Teens should realize that now is a prime time to start saving. Saving money is important because having no money at all is a bad thing. Like my grandmother always says, “Having no money and wanting something is very bad, but having money and wanting something is the best thing in the world.”
If teens start saving as soon as they get their first paid job, by the time they graduate from high school they can have enough money to help pay for some of their college expenses. For example, they could use their savings to help pay for items like food, a computer, and other college costs. Having some of your own money saved to help pay for your expenses can also take a lot of stress off your parents—especially if they aren’t sure where they will get the money to pay college tuition.
Saving also shows your parents that you are responsible. It proves that you are ready for the real world. When you get a job and save some of the money you get from your paycheck, it shows that you are taking initiative and looking forward into the future.
Here are 5 helpful tips to help teens start saving:
- Save your change. When you see a coin on the ground, pick it up and put it in your pocket. Over time, they will add up.
- Try to save at least half of what you make. For every dollar you earn, put at least 50 cents in your piggy bank. Even this small savings can help you build something to come back to in the future.
- Make your money work for you. If you have any spare money in your pocket put it in your bank account. While leftover money is in your pocket it’s not doing anything, but if you put it in your bank account it can grow with interest
- Spend your money wisely. Don’t spend your money on just anything, because once you really need something you might not have enough money to get it because you just spent all your money on something you didn’t need.
- Set savings goals. Once you think of a good goal, take a picture of it or write it down and put it somewhere where you can see it every day. This will remind you to put some money in your bank account to help you reach your goal.
In the end, saving is important to help you have a good living. It can be hard for teens to save because they think that they can start saving as an adult but by that time, it may be too late. By starting early, you can build good savings habits and if you put money in the bank it can grow without you having to do anything.
We hope Nakeya’s wise words can be helpful to those just getting started with savings. For more information and resources that can help teens improve their financial literacy, visit the resources page or call CAAB at 202-419-1440.
