| When it comes to saving money, every penny counts. | | | | you may have to pay taxes on any interest your |
| So many people simply assume that small amounts of | | | | accounts make. |
| money aren't worth the bother of saving. But little | | | | But if you borrow the money, say you find that you |
| things add up. | | | | are short $15 dollars a week, or $65 a month, and you |
| Have you ever broken a large bill, such as a fifty, to | | | | charge it on your credit card to make up for the |
| only be surprised that it disappeared so quickly. Little | | | | shortcoming. Over five years at a 18% interest rate, |
| amounts of money will just flow out of your hands. So | | | | you will end up with $6000 in credit card debt. That is |
| it is logical to assume that little amounts can add up | | | | $2000 more in debt that you could have saved. |
| just as quickly. | | | | With a little over a $2 a day investment, you can have |
| However, you can't just assume that spending and | | | | a nice amount of money in five years. And remember |
| saving is equal. Saving $15 a week is not the same as | | | | that with compounding interest, the more time you give |
| spending $15 dollars a week. You have to factor in | | | | your money, the faster it will grow. Think about it. |
| compounding interest on saving and borrowing. | | | | I find that this is also a good option for kids to learn |
| Let's look at $15 dollars a week in three different | | | | how to save for a large item. When your child is |
| scenarios: spending, saving and borrowing. | | | | twelve, give them the option of saving $15 a week. |
| When you spend $15 dollars a week in cash or from | | | | They can work for you for this money or it can come |
| your checking account, you are spending $780 a year. | | | | from their allowance. Do the math and let them see |
| That doesn't seem like to much. After all, it is only a | | | | that by saving this small amount of money, they can |
| little over $2 a day. But over five years, that $15 adds | | | | have enough for a car in five years. There are plenty |
| up to $3900. | | | | of financial lessons to be learned around the purchase |
| If you are able to save that $15 a week and put it | | | | of a teen's first car. |
| aside in a savings account that earns 3% interest, you | | | | Small amounts can have a large impact on your |
| could end up with approximately $4,202. By saving | | | | personal finances. There are plenty of ways to find |
| your money, you made around $300 dollars. | | | | extra money to save. You can simply dump all of your |
| This isn't taking into account that there are much better | | | | dollar bills and change in a jar each night. You can use |
| saving options out there. After saving for a year, you | | | | coupons and put the money saved in your jar. You |
| could put the money over into a CD, starting a ladder | | | | can decide not to buy something you don't need and |
| of sorts. CDs usually have higher interest rates, yet are | | | | put the money in your jar. Small amounts of money |
| still a safe investment for your money. Remember that | | | | are worth the bother after all. |