Readers Corner

SET YOUR GOALS
Saving money is hard! But it's not impossible, especially if you set some goals for yourself. The easiest way to do that is to think about what you want to spend your money on now and what you want to save it for in the future. For instance, you might want to buy a pair of shoes now and the most up-to-date ipad or gadget at a future date. You can divide your goals into 2 groups:

• Short-term goals (for now)
• Long-term goals (for later)

Your pair of shoes will fall under the short-term goals, while your computer falls under the long-term-goals. Now you must be wondering how you can save enough money for all these things. Here’s how! Whenever you earn some money, you need to set aside a chunk of it as savings. You need to do this again and again because the more you save, the sooner you can buy your cool stuff. The great thing about saving is that the more you do it, the easier it becomes!

START GIVING
As you grow older, you become more aware of your environment and the importance of giving and sharing with those who do not have as much as you do. There are various ways to give back.

How would you give back to your community?

START SPENDING
We all love to spend. This is why it is very important that we plan how we spend our money. Before you pay for that trendy pair of shoes, you need to ask yourself some questions:

1. Is the price of the shoe worth the cost of my not saving the money instead?
2. Do I really need to buy this now or could I wait a bit longer and get it at a cheaper price when it is on sale?
3. Am I making this purchase because I want it or because I need it?
4. Will I make the most use of this purchase and do I have alternatives I can use now?

Exercise: What other reasons can you come up with to buy or not to buy?

START SAVING
Planning for the future is an important aspect of life. It is important that you have a road map for anything you want to do. This applies to how you manage money given to you for your upkeep.

Each time you receive your weekly or monthly allowance from your parents, you might be tempted to spend on non-essential items or visit the cinema with friends. Don’t give in to it! The smart thing to do is to take out a portion of the money and deposit it in your Early Savers Account, where you can earn more money in the form of Interest.

As an account holder, you can easily keep track of your money in the bank. You get regular bank statements (usually monthly, daily or weekly - depending on what you prefer) or you can check your account online. This way you can keep track of all your savings, spending and earnings.


START INVESTING
As you grow older and learn to be more responsible with money, it is very important that you start to plan for your future. By starting at an early age to understand how to manage your money, you are setting the right foundation for when you become an adult. By setting aside a portion of your allowance or earned money, from interest or from chores, and depositing them in your Early Savers Account, you are gradually learning how to manage your finances.

Another great way of saving money is by Investing. You can make your money work for you by setting aside a fraction of your money as investments. Investments are long-term (for the future) savings and the interest you earn on an investment is more than what would you earn on a savings account.
Before you invest, it is important you save and you consider the following:

1. How risky is the investment I want to make?
2. How much am I likely to make from this investment?
3. How easy would it be for me to get out of the investment?

Every investment has its risks. The more the risk, the more money you are likely to make from it. So it is very important to seek help from an adult before making any major investment decisions.