MONEY MANAGEMENT
HSBC Bermuda offers some money saving tips for teens
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s a teenager, there are lots of things you'd like to buy if you had a little more money. The latest WUDLQHUV D QHZ SKRQH \RXU ̰UVW ELNH Ȁ RU car. Saving up for these things can sometimes feel like a challenge, but it doesn't need to be. By following a few simple tips, you can start building up a pot of money to spend on whatever you want. And, you'll still enjoy a little disposable cash to spend on day-to-day expenses. Here are our best savings tips for teenagers. 2SHQ D VDYLQJV DFFRXQW A savings account can help you to keep a pot of money separate from your main account, reducing the temptation to VSHQG LW 0DQ\ VDYLQJV DFFRXQWV DOVR R̯HU better interest rates, meaning you can grow your money pot faster. The best way to manage a savings account is to add to it on a regular basis and withdraw as little as possible. Set up a direct debit so that the same amount is taken out of your pay or allowance every month. That way you're less likely to miss the money. By setting up a direct debit you save without thinking. It is easy to make a plan and have good intentions, but you might just forget to save or send that transfer. Taking ‘human error’ out of
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the equation with a direct debit makes saving more successful. 'L̯HUHQW W\SHV RI VDYLQJV DFFRXQW R̯HU GL̯HUHQW EHQH̰WV DQG UHVWULFWLRQV so make sure you check the terms and conditions carefully to ensure \RXU DFFRXQW ZLOO EH D JRRG ̰W IRU \RXU personal goals and saving habits. As a teenager, you may need a parent or guardian to be present in order to open a savings account, and you may need to meet some criteria in order to be eligible. )LJXUH RXW KRZ PXFK \RX FDQ DƵRUG WR VDYH Setting a regular savings target each month is the best way to consistently build your money pot. So if you have a regular income from a part-time job or allowance, it might be a good idea to add a percentage of it to your savings account each month. You can leave the remaining amount for everyday expenses and treats. Obviously, the more you can save, the more quickly you'll reach your goal. But LW V LPSRUWDQW WR EH UHDOLVWLF 7U\ WR ̰QG a balance that maximises your savings while also giving you enough disposable cash to treat yourself from time to time. 6HW D VDYLQJV JRDO 6HWWLQJ \RXUVHOI D VSHFL̰F JRDO WR UHZDUG \RXU VDYLQJ H̯RUWV FDQ EH D
great incentive to stay on track. This PLJKW EH VRPHWKLQJ VSHFL̰F WKDW \RX want to spend the money on, such as a bike or a trip overseas, or it could be an DPRXQW \RX ZDQW WR UHDFK E\ D VSHFL̰F date. Knowing what you are saving for is important, it gives you a ‘why’. Understanding the reason you are saving will motivate you to keep your savings plan. Make sure your goals are ambitious but realistic. You'll quickly become discouraged if you leave yourself so short of everyday cash that you're frequently running out of money or being forced to miss out on fun events with friends. Whatever your goal is, keep track of it and remember to note down your SURJUHVV <RX OO ̰QG WKDW WKLV HQFRXUDJHV you to stick to your plans and hopefully achieve your goal even faster. 5HYLHZ \RXU VSHQGLQJ Before you start saving, it's a good idea to look at how you currently manage your money. Do you tend to run out before the HQG RI HDFK PRQWK RU GR \RX RɓHQ KDYH D OLWWOH OHɓ RYHU" Make a list of all the things you regularly spend money on — such as food, clothes and nights out. Are there any areas where you might be overspending? Could you potentially cut back a little so that you KDYH PRUH OHɓ RYHU WR SXW WRZDUGV \RXU savings goals? .HHS JRLQJ Saving money can feel like a long road DW ̰UVW EXW LW V LPSRUWDQW WR VWLFN ZLWK it. Don't be disheartened if there are challenges along the way. As long as you're consistently putting money aside and resisting the temptation to dip into LW WRR RɓHQ \RXU XOWLPDWH VDYLQJV JRDO should be within reach. 7KH HDUOLHU WKH EHWWHU It’s never too early to start saving for your future. As a teenager you have time on your side and can take advantage of compound interest (interest on interest). Starting early is a real asset. Investing can be a good way to make your savings work for you, and saving to invest, to grow your IXQGV IRU D VSHFL̰F IXWXUH JRDO LV D JRRG place to start. 7R ̰QG RXW PRUH DERXW RSHQLQJ D saving account visit www.hsbc.bm/ savings or call HSBC on 295-4000. Your Future 2022
