Youth Savings Tips
Saving Practices Made Easy
It's easy to put off saving money, but a solid plan today is the key to success tomorrow. By following some basic guidelines, you'll be able to get the things you want — like a car, or video game, and the things you need — like college tuition, textbooks, or emergencies.
Pay yourself first
Use automated transfers to get in the habit of saving. Money will be transferred from your account without you seeing it, which makes you less likely to miss it. Simply complete a form authorizing GCS to receive a portion of every paycheck and deposit it directly into your savings account.
Save 10% of your paycheck
The general rule of thumb is to save about 10% of each paycheck. If that seems too high, try 5% and work your way up to saving 10% of your earnings. Add 1% every year you get a raise until you reach 10%.
Examine your goals to determine which savings plan will work best for you. For example, don't invest all your money in an aggressive stock or mutual fund if you're conservative with your money. Saving for retirement? Select a plan that will fit your financial needs down the road.
Realize that age matters
Always take into consideration how much time you have to save for your goal. If you're a recent college graduate, you have several decades to ride out the highs and lows of the market. You can take advantage of more high-risk investments. If you're only a few years from retirement, you might not have the time cushion to afford to be too aggressive.
Other Youth Savings References
GCS Credit Union brings Banzai, a premium online financial literacy program, to educators and students in our area for free. Using Banzai's unique technology, GCS teaches students to navigate adult financial dilemmas with real-life scenarios.