Starting your first part-time job is a big milestone! Seeing your paycheck hit your bank account can be exciting, and it’s a great opportunity to build strong financial habits early.
Here are three practical tips to help you manage your money wisely:
Set a Savings Goal
Even if you don’t have major expenses yet, that doesn’t mean you are exempt from saving. To help keep you on track and set you up for future success, create a savings goal to give yourself something to look forward to. Some smart things you could start saving for are:
- Education: College tuition, application fees, textbooks, school supplies.
- A car: Down payment, insurance, gas, maintenance.
- Technology: Laptop for school, phone upgrades or repairs.
- Experiences: School events or school trips, experiences with friends.
- Emergency fund: For those unexpected expenses
Choose a goal that matters to you, estimate how much it will cost, and start saving a portion of each paycheck toward it.
Use Automatic Transfers
If you haven’t already opened a bank account, now is a great time to do so. Having both a checking account (for everyday spending) and a savings account (for long-term goals) makes it easier to manage your money.
One of the best ways to build your savings without even thinking about it is by setting up automatic transfers. Directing a percentage of each paycheck straight into your savings account helps you reach your goals faster and keeps you from accidentally spending money you intended to save. Many employers offer this option through direct deposit, or you can set it up through Royal’s online banking app. If you prefer, you can even transfer funds manually each time you’re paid.
Royal Credit Union also makes saving simple with their Save and Spend Duo account, which includes a high-yield savings account, no minimum balance, and debit card round-up so every purchase is rounded up, and the spare change goes right into your savings.
Understand Wants vs. Needs
While it’s okay to splurge occasionally, it’s important to recognize the difference between wants and needs. Needs are things you must have to live or succeed. This includes items like food, school supplies, transportation, and basic clothing. Wants are things that are nice to have, but not essential. Some common wants are fast food, the newest video games, and trendy clothes.
Being mindful of your spending helps you avoid impulse purchases and keeps you focused on your financial goals.
Successfully managing your money means you’re making smart choices that will benefit you in the long run. By starting now, you’re setting yourself up for financial success in the future.
