Savings has to do with putting part of your income to be used later. With savings you can avoid running into debts. Some youths feel that since they are not earning from a salary, they do not have to save, but that is false. You need to save from the little you have and develop that saving culture so that you will be able to save your money when you start earning a salary.
Youths need to save every time in case they have emergency needs. You save first from your income or pocket money before thinking about how to spend it.
Here in this article we will discuss how to save money for future use
1. Buy what you need
Since parents do not need to provide you with everything you want. As a youth you might just want to buy something you need, you are not expected to be asking your parents for money to buy every little thing. Youthful exuberance may make you spend without thinking, you should get rid of such, only buy things you need not spending because your friends are spending.
2. Know your expenditure
To save money for the future, you need to know your expenditure and only keep the amount that you know will be enough for a certain time. Expenditure can also be payment of cash or cash-equivalent for goods and services, or a charge against available funds in payment of an obligation as evidenced by an invoice, receipt, voucher, or other such document.
3. Have a budget
A budget is a financial plan for a defined period, often one year. It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities and cash flows. Wikipedia
A budget can also be an estimate of costs, revenues, and resources to be used over a specified period, reflecting a future reading of financial conditions and goals.
A budget will help you plan on how you are going to spend your money in a good way without buying things you do not need over a period of time. Carefully list out the basic things you need then put the rest of you money in the bank
4. Own Fixed deposit account
A fixed deposit is a financial instrument provided by banks or NBFCs which provides investors a higher rate of interest than a regular savings account, until the given maturity date. It may or may not require the creation of a separate account. Wikipedia
This is quite okay for people that earn more money, this involves you depositing an amount of money in the bank with no plan of withdrawing it anytime soon because of the processes involves. Some banks will give you a time frame for you to be able to withdraw from that bank account.