You're never too young to learn about money. Start developing a sound savings plan with money from part time jobs or your pocket money. Earning money teaches you to make choices and prioritise what you want to buy with your money. Managing money when you're young will be habit forming and prepare you for future investment decisions.
Start to save
When you get your first job and start earning your own money, saving and investing for the future is probably the last thing on your mind. But if you have financial goals like buying a car, moving out of home or going on a holiday, its easier to see how saving can help you get where you want to go, faster.
Why save?
Saving lets you worry less about day-today hassles and focus on longer term financial goals. Developing good savings habits is an important life skill and is one of the easiest to learn, especially if you start young.
- Saving gives you:
- Financial security and lets you avoid the stress of living on the edge
- A buffer zone against unexpected illness, unemployment or emergencies
- Easier access to credit for loans or a mortgage if you have a strong saving history
- Enjoyment of life's little pleasures
- Control over your finances
Reach your goals
Dreaming of a holiday in Bali or backpacking around Europe? Maybe you've found the hottest car and the coolest stereo. No matter what your goals, saving helps you reach them faster and it's not as hard as you think. Putting aside even a small amount of money each week soon adds up and before you know it, you'll be enjoying the benefits.
Establish a savings history
A regular savings routine establishes a financial track record, which is essential when you apply for credit cards or loans. The amount you save is not as important as the regularity of your saving habits because it proves to lenders you are disciplined enough to repay their loan. This will improve your chances of getting a loan application approved.
Money Matters is brought to you by CPS Credit Union and Bridges Personal Investment Services. All information is offered as a guide only and we recommend seeking expert advice tailored to your own unique financial situations and goals. Contact CPS Credit Union to arrange an obligation free consultation to discuss your financial planning strategy.
