Last week we were talking about ways to make money in the summer (minus the work permit!) and I posted a Summer Savings Quiz. How did you fare fiscally? Check out the answers below:
- A great way to save the money you earn is to deposit it into a ______________.
ANSWER: Savings Account.
TIP: A lot of banks don't charge kids any fees, so make sure you and your parents shop around for the right one!
- This is the money your parents give you to do household chores.
- This is income earned BACK on the money you deposit into a savings account.
- Finish this saying. "A penny saved is a penny ______."
Spending less money lets you save more!
- BONUS: What does the S&P 500 stand for?
ANSWER: The Standard & Poor's 500.
They are the 500 most common large stocks traded in the United States. They are selected by a committee, and representative of the industries in the U.S economy. Look in the Business section of the newspaper for their listings. After you've mastered your own finances, you may become interested in Wall Street!
Get off to a good start saving by putting your money in an interest bearing savings account at your local bank. Your parents may have even already set up an account for you. Whether it's five bucks, or a hundred bucks, it all helps. Then the best thing to do is make a savings plan. Decide how much you're willing to put in each month, and do it. Saving just $5 a week at 3% interest would add up to over $3,000 in 10 years!
Let us know any tips you have for saving money in the Comments below. Until next time!
—Ratha, Stacks Writer