Kids! School is about to start again, have you bought new supplies and a new backpack?
Although the above are back-to-school “must haves”, there are many styles and prices to choose from. For example, generic backpacks are cheaper than fashionable-themed backpacks, but both have the same functions. The generic, average-priced backpack is our “need”, the more expensive cartoon-themed backpack is our “want”. If you would like to spend more wisely, you must know how to tell the difference between things “you want but don’t really need” and those that are “life’s basic needs”.
Once we learn how to tell the difference between “needs” and “wants”, try to write them on a list. Interestingly, you will see the “wants” list is never ending – like if you want a remote control car, you would also want a game console, etc. But your allowance is limited and so is your parent’s wealth, so you could never buy everything that you want.
We must to learn to choose. Give more thought about the things on the “wants” list. Learn to set reasonable targets and save up your money for them.
Every time our parents give us pocket money, we usually save up the unused amount. Give yourself a pat on the back! It is always good to have a saving habit. But the amount of money you put into the piggy bank is different every time. Do you find it difficult to know the effectiveness of your saving habit? Let’s try something different. Whenever your parents give you pocket money, try putting a part of it into your piggy bank first and then spend the rest of it. You will see that this way will work better than before.
Let’s fill up our piggy banks more quickly!
Why do you need to save regularly? Because you can better plan your savings to reach your goals. Imagine you want a story book, but you also want a gift for your mom’s birthday in 6 months’ time. What will you do?
It’s best to save in two portions, the bigger portion can go into the piggy bank for “mom’s gift” and the smaller portion can go into the piggy bank for “story book”.
Then perhaps before your mom’s birthday, you will have saved enough to buy both!