We've experienced a moment where you really want to do something, but simply don't have the cash to make it happen. Most of you have probably felt the pang of regret that I always feel when I realize that if I had just managed my allowance a little better, I would have been able to fund it.
Managing your allowance can be difficult. For most teenagers, it is our first real introduction to budgeting and saving. Like me, if you find yourself spending your allowance as soon as it's in your wallet, here are three money-management strategies that may come in handy.
1. The Rule Of Threes
The rule of threes is the most straightforward way to manage your money and will help you make sure you save over time. Each time you get an allowance, divide the total amount by three, giving yourself equal parts to spend, save, and donate to charity. It may take discipline to restrain yourself from spending it all but, you can save a lot over time if you commit to the strategy.
2. Track Your Spending
No matter how much money you have to spend each month, it's imperative that you keep track of your spending. While a $4 Starbucks drink may not seem like much, small purchases like that can add up. Whether you use a list in your notes app or budgeting software like Mint, keeping a record of your spending is essential.
3. Wait to Buy
Most parents give their teens an allowance at a regular cadence. Being aware of how long until you will next get allowance is an integral part of managing your money. If you know you want to purchase something nonessential, you may want to wait to buy until right before you expect your next allowance. Then, if something more important arises in the interim, you won't have wasted your money.
Whenever we talk about finding jobs, my dad tells me, "If you love what you do, you'll never work a day in your life."