Saving money now days seems almost impossible. Not only have gas prices and home expenses risen over the past 6 months but jobs have become harder and harder to find. In order to save money in this type of economy parents need to start teaching their children money management tips from a small age. Below are a few helpful tips.
- Track your money. You should know exactly what is coming in and going out.
- Limit your credit cards. Credit cards should not be for everyday use but for emergency situations.
- Keep a budget. Limit the amount of money you spend on entertainment and eating out. Give yourself a weekly allowance.
- Always have an emergency fund. The average person should have at least 3 months salary in an emergency savings account in case of job loss, family illness, etc.
- Don’t get behind on bills- Ask for help when you need it. There are a few financial services that offer short-term payday loans for minimal finance fees.
These tips seem very simple yet 61% of Americans say they live paycheck to paycheck an increase from 49% in 2008. Of the 61%, 21% of these Americans are in the high-income levels. Another alarming statistic states that 36% of individuals put no money towards retirement like a 401k or IRA. Social security is predicted to run out in 2037 so it is very important to start saving for retirement now. These tips are a starting point and will hopefully help with your money management.