how to spend your money wisely essay

Essay on Money Management

Students are often asked to write an essay on Money Management in their schools and colleges. And if you’re also looking for the same, we have created 100-word, 250-word, and 500-word essays on the topic.

Let’s take a look…

100 Words Essay on Money Management

Understanding money management.

Money management is about how you handle your cash. It’s like a game plan for spending, saving, and making sure you have enough for important things. You keep track of what you earn and make smart choices on what to buy.

Saving Money

Saving means putting money aside for later. Each time you get money, you should save a part of it. This can help you buy big things in the future or have money in case of emergencies.

Spending Wisely

When you spend, think about what you need versus what you want. Needs are things like food and clothes, while wants are extras. Always try to spend less money than you have.

Making a Budget

A budget is a plan for your money. You write down how much money you get and then plan how to spend it. Sticking to a budget helps you not run out of money.

Investing is using your money to try and make more money. It can be risky, so learn and start small. It’s a way to grow your savings over time.

250 Words Essay on Money Management

What is money management.

Money management means taking care of your money. It’s like knowing how to use your pocket money wisely. You plan how to spend it, save some, and make sure you have enough for things you need.

Saving is putting money aside for later. Imagine you want a new toy or a book. If you save a little bit of your money every time you get some, soon you will have enough to buy what you want. It’s like filling a piggy bank; drop by drop, it gets full.

When you spend money, think about what you’re buying. Ask yourself if you really need it or if it’s just something you want because it looks cool. Sometimes, waiting before buying something helps you decide if it’s important.

A budget is a plan for your money. You write down how much money you get and then list the things you need to spend money on, like food, school supplies, and clothes. If you plan it right, you can also save some money.

Why It Matters

Handling money well is a big part of life. When you learn about it while you’re young, you get better at making good choices with money when you’re older. It means you won’t run out of money when you need it, and you can even help others. Plus, you’ll feel proud that you can take care of your money all by yourself.

500 Words Essay on Money Management

Money management means taking care of your money. It’s like being the boss of your own cash. You decide what to do with it: spend it now, save for something big later, or even put some away for times when you might need it urgently. It’s important because it helps you make sure you always have enough money for the things you need and want.

Creating a Budget

Think of a budget as a spending plan. It tells you how much money you have, where it needs to go, and what you can spend without running out. To make a budget, list all the money you get, like allowance or birthday cash. Then, write down what you need to spend money on, like school lunches or saving for a new bike. What’s left is your spending money. Remember, a good budget helps you not spend more than you have.

Saving is like planting a seed that grows into a money tree over time. When you save, you set money aside for later. You might save for a game, a trip, or just to have some extra cash when you need it. A good tip is to decide on a certain amount to save each time you get money. This way, saving becomes a regular habit, just like brushing your teeth.

Smart Spending

Smart spending doesn’t mean you never buy fun things. It means thinking carefully before you buy. Ask yourself: Do I really need this? Will I use it a lot? Could I find it cheaper somewhere else? Sometimes, waiting a bit before you buy can help you decide if it’s really worth it.

Understanding Needs vs. Wants

Needs are things you must have to live, like food, a home, and clothes. Wants are extra things that are nice to have but you could live without, like toys and video games. Good money management means taking care of needs first and then seeing if there’s money left for wants.

Dealing with Emergencies

Emergencies are like unexpected storms that can shake up your money plans. It could be a broken bike or a lost school book. This is why you have savings. If you’ve saved up, you can handle these surprises without getting stressed.

Making Money Grow

You can make your money grow by investing, but this can be tricky. It’s like giving your money a job where it can earn more money for you. Talk to a grown-up and learn about things like bank accounts that earn interest. This means the bank pays you a little bit for keeping your money there.

Sharing and Giving

Money isn’t just for spending on ourselves. Sharing with others can make us feel good. You might give some money to help people in need or support a cause you care about. This is a part of money management, too, because it’s about deciding how to use your money to make a difference.

Managing money is a big responsibility, but it’s also a powerful skill. When you learn to manage your money well, you’re in control. You can reach your goals, handle emergencies, and even help others. Start practicing these money management tips, and you’ll be on your way to being a money management pro!

That’s it! I hope the essay helped you.

If you’re looking for more, here are essays on other interesting topics:

Essay on Money And Happiness
Essay on Modesty
Essay on Modernism

Apart from these, you can look at all the essays by clicking here .

Happy studying!

10 Simple Ways To Manage Your Money Better

Being good with money is about more than just making ends meet. Don't worry that you're not a math whiz; great math skills aren't really necessary - you just need to know basic addition and subtraction.

Life is much easier when you have good financial skills . How you spend your money impacts your credit score and the amount of debt you end up carrying. If you’re struggling with money management issues such a living paycheck to paycheck despite making more than enough money, then here are some tips to improve your financial habits.

When you’re faced with a spending decision, especially a large purchase decision, don’t just assume you can afford something. Confirm that you can actually afford it and that you haven’t already committed those funds to another expense.

That means using your budget and the balance in your checking and savings accounts to decide whether you can afford a purchase. Remember that just because the money is there doesn't mean you can make the purchase. You have also to consider the bills and expenses you'll have to pay before your next payday.

How To Manage Your Money Better

Have a budget : Many people don’t budget because they don’t want to go through what they think will be a boring process of listing out expenses, adding up numbers, and making sure everything lines up. If you’re bad with money, you don’t have room for excuses with budgeting. If all it takes to get your spending on track is a few hours working a budget each month, why wouldn’t you do it? Instead of focusing on the process of creating a budget, focus on the value that budgeting will bring to your life.
Use the budget: Your budget is useless if you make it then let it collect dust in a folder tucked away in your bookshelf or file cabinet. Refer to it often throughout the month to help guide your spending decisions. Update it as you pay bills and spend on other monthly expenses. At any given time during the month, you should have an idea of how much money you’re able to spend, considering any expenses you have left to pay.
Give yourself a limit for unbudgeted spending : A critical part of your budget is the net income or the amount of money left after you subtract your expenses from your income. If you have any money left over, you can use it for fun and entertainment, but only up to a certain amount. You can’t go crazy with this money, especially if it’s not a lot and it has to last the entire month. Before you make any big purchases, make sure it won’t interfere with anything else you have planned.
Track your spending: Small purchases here and there add up quickly, and before you know it, you’ve overspent your budget. Start tracking your spending to discover places where you may be unknowingly overspending. Save your receipts and write your purchases in a spending journal, categorizing them so you can identify areas where you have a hard time keeping your spending in check.
Don’t commit to any new recurring monthly bills : Just because your income and credit qualify you for a certain loan, doesn’t mean you should take it. Many people naively think the bank wouldn’t approve them for a credit card or loan they can’t afford. The bank only knows your income, as you’ve reported, and the debt obligations included on your credit report , not any other obligations that could prevent you from making your payments on time. It’s up to you to decide whether a monthly payment is affordable based on your income and other monthly obligations.
Make sure you’re paying the best prices : You can make the most of your money comparison shopping, ensuring that you’re paying the lowest prices for products and services. Look for discounts, coupons, and cheaper alternatives whenever you can.
Save up for big purchases : The ability to delay gratification will go a long way in helping you be better with money. When you put off large purchases, rather than sacrificing more important essentials or putting the purchase on a credit card, you give yourself time to evaluate whether the purchase is necessary and even more time to compare prices. By saving up rather than using credit, you avoid paying interest on the purchase. And if you save rather than skipping bills or obligations, well, you don’t have to deal with the many consequences of missing those bills .
Limit your credit card purchases : Credit cards are a bad spender's worst enemy. When you run out of cash, you simply turn to your credit cards without considering whether you can afford to pay the balance. Resist the urge to use your credit cards for purchases you can’t afford, especially on items you don’t really need.
Contribute to savings regularly : Depositing money into a savings account each month can help you build healthy financial habits. You can even set it up so the money is automatically transferred from your checking account to your savings account. That way, you don’t have to remember to make the transfer.
Being good with money takes practice : In the beginning, you may not be used to planning ahead and putting off purchases until you can afford them. The more you make these habits part of your daily life, the easier it is to manage your money, and the better off your finances will be.

Frequently Asked Questions (FAQs)

Why is money management important.

Without money management, personal finances are a bit of a mystery. This can lead to overspending and living paycheck-to-paycheck. Money management can help you have a better handle on your income and spending so you can make decisions that improve your financial status.

How do you improve money management?

You can improve your money management by regularly evaluating what you're doing with money and making changes that make sense for you. For example, if you don't have a budget, you could start by developing one. If you have a budget, you could track your spending and see how it lines up with your budget. Once you have an idea of your income and spending, you could choose to increase your savings, pay off debt, or start investing based on your financial goals.

Consumer Financial Protection Bureau. " Budgeting: How to Create a Budget and Stick With It ."

Consumer.gov. " Making a Budget ."

FiftyThirtyTwenty.com. " Income + Financial Stability in America ."

Consumer Financial Protection Bureau. " Spending Tracker ."

Consumer Financial Protection Bureau. " Bill Calendar: Know What You Owe and When It's Due ."

WSFS Bank. " 5 Ways to Save for a Big Purchase ."

Discover. " Six Tips On How To Stay Out of Debt ."

Consumer Financial Protection Bureau. " Looking for An Easy Way to Save Money? Make It Automatic ."

How to Spend Money Wisely: 12 Hacks To Improve Your Habits

This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here .

“What’s the first thing that comes to mind when thinking of how you can improve your financial situation?”

Many people would say “spend less money.”

One way to do this is by buying something used. In fact, a study found that Americans buy 10% more new items than they did in 2008 because we have so many promotional offers available. Not only should you be trying to save some money on your purchases, but also cut all kinds of other expenses from your lifestyle and keep them at a minimum.

Usually, people spend more money than they need.

This can lead them to have less money saved or be able to afford the things they want.

However, with a few simple changes in your spending habits, you will be able to make more of what you earn and feel more satisfied.

In today’s world, it is easy to be overwhelmed by the amount of information available on how you should spend your money.

With more and more people struggling with their finances, I would like to share a few hacks that have helped me spend money wisely and simplify my life.

Also, I am going to include some simple money saving tips on how to spend less money! Do not get duped into buying things you did not plan on purchasing or spending more money than you needed to.

How to Spend Money Wisely

As you can see shortly, there are many ways to spend money wisely. Whether it be through saving, investing, or taking care of your health; with this article as a guide, you won’t have to worry about your money any longer.

This is meant to inspire people on how they can better manage their finances and live more efficiently, while still being able to get the things that they want.

Spending money wisely is a way of life, but it can be tough to know where exactly you should start.

Luckily for you, we will break down ten hacks for you to follow so that your money does not go to waste.

1. Pay Yourself First

You are probably wondering, why is saving money about how to spend money.

The first thing you should do to spend money wisely is to pay yourself first.

This could be saving for the future with an emergency fund, which can be used in case of emergencies or downturns in your financial situation. This can be done by contributing to a high-interest savings account and saving up to $1,000 or more for emergencies.

Or choose one of our money saving challenges to match your financial goals.

2. Take Care of You

You need to take care of your health, as that will improve the quality and longevity of your life.

Making wise choices on choosing quality food and healthcare may cost more money upfront, but in the long run, it will save you money on huge medical expenses.

You spend your money wisely by taking care of your health. Money spent on a gym membership, healthy food, and other medical expenses can save you even more money in the long run.

Many people love the idea of time freedom for this reason.

3. Invest in Your Future

One way to spend money wisely is by investing in your future. This might be done through a 401(k) or Roth IRA, which lets you invest pre-tax dollars and then withdraw them tax-free once you retire.

This can be a great way to save on taxes, but the money needs to stay invested for at least five years before you’re able to withdraw it without a penalty.

4. Choose Experiences

We live in a society that prizes material purchases and spending. Remember to prioritize experiences by getting outside. Not just for your health, but also on the mental and emotional levels, as well as the personal and even family levels.

Also, a plethora of benefits to spending money on experiences, not all materialism related.

Try to spend less on electronics and materialistic items that fill your home and more on experiences like travel or going out with friends.

This is a great way to spend time with your family and friends instead of buying things for them.

Related Reading: Overcome Gift Regret: Experience Gift Ideas That Do Not Go To Waste

5. Set Goals

Many of us, regardless of financial status, know that if we want to live on the right path without having our finances stress us out, then there are good habits to be followed.

Think about how much money you want to make in the next five years or ten years and make up how to get there.

Now, you need to line up your spending to make that happen.

Not sure how to set goals? Start here with making smart financial goals .

The next hack is to make a budget and stick to it, which will help you spend your money wisely by only spending what you have available in each category.

A budgeting strategy helps you develop better financial skills. These strategies are practiced in order to help prevent overspending and create a set spending plan for you.

Create a budget that includes all your expenses and then each time you get paid, put a little bit of your paycheck into each category.

7. Evaluate Your Spending

Oftentimes, we find ourselves buying items that are not necessary and just a waste of money. This hack is to evaluate what you’re spending your money on and think about whether or not you want to continue this habit.

For every purchase ask yourself if the item is worth it and what will happen if you don’t buy it.

By completing a no spend challenge , you will be amazed at the things you find out are not worth spending the money on.

8. Likeminded People

Next, you should try to spend less time with people who are going to make you feel bad about yourself.

This is a hard one but just think of the good things that will happen when you stop hanging out with people who make you feel bad.

If you are constantly around people you need to learn how to not spend money, then you will be battling upstream battle. Look for those who have the same mindset and are determined to spend money wisely.

9. Spend on Quality Over Quantity

The best way to buy quality items is to spend more money on them. Buying cheaper items has its risks, but over time it will lead to dissatisfaction with the product and waste of money.

If possible try to spend money on things that will last a long time and not just stuff like food or rent.

This concept of quality of quantity is not difficult to understand. For example, instead of owning 10 pairs of jeans that you think you need, you spend money on the two pairs of quality jeans that you love.

Because items are so cheap to pick up, it is easy to quickly fill our homes with quantity and excess stuff (plus we are spending more in the process). Instead, spend a little more and buy less of what you truly need or want.

10. Eat at Home

One way to save money is by cooking more at home and not going out to eat. You can also cut down on the amount of food you purchase, which will help you save a ton of money in the long run.

Instead of buying food that will go bad quickly or ruin your health, buy more expensive food. This way you are spending less money on the product but it is going to last longer and be better for you.

By spending money wisely, you must learn how to spend less money on food.

11. Use Tax-Advantaged Accounts

Specifically, I am talking about FSA or HSA, or dependent care FSA. This is when you set aside money each year for these purposes. Money goes into these accounts tax-free, so you are lowering your taxable income.

On how to spend FSA money, you must have the proper documentation on your plan. The same is true for how to spend HSA money.

The limits change each year on how much you can contribute to each of these plans, but the maximum you can spend tax-free is over $20,000 for a family.

This is a great trick to spend money wisely and lower the amount you owe in taxes. Just make sure to spend the amounts in the FSA each year!

12. Spend on things that add happiness to life

Personally, I have a hard time spending money. Period. This is something I am working on as we progress through our financial journey. Now, I look to spend money on ways that will improve our life or bring smiles to our faces.

Spend on things that add happiness to your life.

For example, if you’re happy with the new shoes you’ve just bought, then it’s worth spending money on them! If you love to travel, spend on travel. If you like reading fiction novels, spend on fiction novels.

Spend your money on things you enjoy and make the most of the disposable income you have.

How to Spend Money to Make Money

One of the best ways to make money is to give back. However, it takes some money to make money, which is typically frustrating to those who constantly want to make more money per year.

By selling a product or service, you are supplying them with your knowledge, advice, and understanding. Another way is through investments. Investing, while not always profitable, has companies that adhere to companies of all kinds.

One of the best ways to spend money wisely is to invest in ways to make money.

There are plenty of ways to make money and start your own business.

Here is a great book to open you up to the idea of starting your own business and the freedom with money it can bring.

Here are great ways to make money on the side:

Sell printables and make passive income!
Become a virtual assistant and make your own schedule.
Learn to get weekly paychecks when investing in the stock market .
Earn money with freelance writing on the side.
Walk dogs with Rover and get paid cash.
Drive for any of these companies and make money – Instacart , DoorDash , or Postmates .
Start a bookkeeping business on your terms.
Sell Earn easy money with flipping items Find great success with this Flea Market Flipper training.
Have kids? Then, teach them to make money with Flea Market Flippers for Kids .

It is possible to make more money on your business than you make more money in your current job or career.

How to Spend Less Money

Many of us spend too much on material items that are not actively used. This creates a situation where we have to make more purchases in order to get the same level of happiness.

The first step towards becoming frugal is deciding what you want out of your possessions, and then only buying those things which will provide you with this goal.

Here are 32 easy ways to do that!

Shop at Discount Stores: You don’t have to go all out with your shopping if you’re looking for a way to save some money. There are plenty of stores that offer great deals and you can still find some really cute clothes.
Find Online Deals : You can find deals online for just about anything. This is a great way to get the deals that you might not know about. There are so many websites out there dedicated to helping you find the best deals and coupons.
Save Money on Your Cell Phone Bill: Just because the cell phone companies want to charge an arm and a leg for service doesn’t mean you have to. There are plenty of options out there where you can find great deals on your cell phone bill without having to break the bank.
Call and Cancel Unnecessary Services: Do you really need to subscribe to cable? How about getting rid of your gym membership because you know that all the exercise won’t do anything for your weight. The truth is you don’t need a lot of these things that are costing you money. Also, try a free service like Trim or Billshark .
Buy Generic Items: Do your shopping at the grocery store and buy generic items instead of brand names for most of your purchases.
Buy in Bulk: Buy items like toilet paper, cleaning supplies, and other things in bulk to save on the cost of each individual item. This is more so for families who can buy food in bulk.
Start Couponing: This is a great way to save money. I know it’s not the most enticing offer, but if you’re looking to save money then coupons can be your best friend. You can go online and find coupons for items that are on sale at your favorite store or you can get them in the Sunday paper.
Use Public Transportation: This is a great way to save on gas and wear and tear on your car.
Get Rid of the Car: If you live in an urban area, it might be worth getting rid of the car and using public transportation or just walking instead. Or become a single-car family.
Carpooling: One of the biggest hacks that many people are unaware of is carpooling- which can save up to $1,000 per year.
Rent Things: Whether it is a video, movie, or power tools to complete a project, renting will save you money.
Use Less Electricity: Turning off lights and other electronics when they are not in use can really help!
Eat Spaghetti : Eating pasta saves money and reduces your grocery bill.
Use the Library: If you like to read, the library might be another alternative to buying books.
Borrow Books: Borrowing books from the library or your friends is a great way to read for free!
Use Online Promo Codes: Using promo codes or coupon codes on all of your online purchases will make a huge difference. Here is a great place to find promo codes and get money back on your purchases.
Eat Out Less Often: Eating out less can save money!
Eat Less Meat: Eating less meat will save on your grocery bill! There are so many wonderful delish meals made with beans!
Buy Used: If you must buy something but don’t want to spend much, consider buying used versions of the items you need. Buying used products will save money and help the environment.
Share with Friends: Sharing your belongings, like clothes or toys, can save you money.
Ask for Help: When someone offers to help you do something it’s only polite to take them up on it.
Find Used Clothing: Buying clothing used can save you a lot of money and help the environment!
Downsize Your Hobby: It’s important to live within your means. If you have an expensive hobby it may be time to scale back on the expense or find a cheaper one.
Need vs Want: Try not to spend money on things that are “needed” but not “wanted.”
Avoid Impulse Spending: Try to plan before you buy anything- think about what you need, the price of items, and if it is worth buying.
Plan Free Activities: Plan outings with friends and family, rather than going to the movies or restaurants alone.
Plan For Expensive Times: Give your friends a heads up before you go out on an expensive outing so they know it’s coming. They may be able to help cover the cost or provide a cheaper alternative. This will help everyone’s budget.
Do Your Research: Research all of your options before you make any purchase- this will allow you to get the best bang for your buck and find the best deals.
Bartering : If you must buy something, but you don’t want to spend much money on it-consider bartering with someone or buying used items instead of new ones (e.g., clothes, furniture).
Know-How You Spend Money: Keep a budget to track your spending and be aware of how much money you have left at the end of the day or week so you can plan accordingly.
Negotiate on Price: If you plan to buy something, don’t tell the retailer how much money you have until after they give their price- this can help save money and time by eliminating any final price negotiations.
Think Before You Spend: Put some thought into your purchases before you make them- this will help you make sure you really want to spend money.

How Much Money Should you Spend?

There is a lot of conflicting information on how much money should be allocated to needs vs. wants, but this takes into account what percentage of take-home pay should be spent on necessities.

Here is the Cents Plan Formula we Use at Money Bliss:

50% to Basic Expenses
20% to Savings
10% to Giving
20% to Fun Spending

So, the average person should spend 50% of their take-home pay towards needs. That means you must spend your money wisely.

Keep a list of what you spend and how much it cost.

You should have some idea of how much money you are able to spend on what. This will help you decide whether it is worth buying a thing or not before purchasing it.

Use the list to see where you can make adjustments, for example spending more time with your family or finding fun things to do with no money .

Ready to Start Spending Money Wisely?

Spending money wisely can seem complicated at times.

The key to using money wisely is understanding how you spend your cash . Spending tends to happen automatically, which can lead people down the path of overspending and debt if not monitored closely.

The affordability of happiness and satisfaction depends intensely on the money we have.

The activities we could do, and expenses we could cut out, can be often atrocious and insufficient for our expectations.

Extreme dissatisfaction and the whole time earning less than we would desire, we may feel that we need to know how to spend money wisely.

The vital hacks elaborated in this post will help to understand caring for a budget, and changing our habits to spend more wisely.

When spending money wisely, people should be aware of their habits so they can change them in order to save more and spend less on things that do not bring happiness or benefit the person’s life.

If you want to save money, spend it on something that will make your life better or more enjoyable.

Know someone else that needs this, too? Then, please share!!

Did the post resonate with you?

More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!

Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.

Spending Money Wisely

Author: Financial Success | Image: Financial Success

Figure out your budget

Making a budget can seem like a time-consuming thing to do, but it is one of the most important steps in order to ensure that you are financially organized. Creating a budget is going to allow you to track your spending, so you know exactly what you are spending your money on, and from there, you are going to be able to become more successful when it comes to achieving your financial goals. The 3 keys to creating a successful budget are tracking your spending, paying off major bills first, and then creating a spending plan.

There are many easy ways to start creating your budget, including

An Excel Spreadsheet
CashCourse Budget Wizard
Mint: Personal Finance & Money (In the App Store)
Template on the Office of Student Financial Success website

What creating a budget is going to do is help you see if you are overspending (spending>income) or if you are underspending (spending<income). If you figure out that you are overspending, then you need to decide to either reduce your spending or find an additional source of income to ensure that you are not going over budget.

Decide what is a need and what is a want

Deciding between a need and a want is an extremely important task when it comes to saving money, especially as a college student where the money is often limited. It can be very hard to decide between the two, especially when something like the new iPhone comes out or one of your friends asks you to go out to eat. However, figuring out what is a need or a want is the key to spending money wisely and sticking to your budget.

What are examples of Needs?

Housing, Mortgage Payments, and Utilities
Loan Payments
University Fees
Transportation
Food (Groceries)

What are examples of Wants?

Sources of Entertainment
Memberships
Brand New Clothes
Dining Out/Drinking at the bars
New Electronics

The needs and wants may differ between people depending on certain aspects of their life. While cutting out wants is important to maintaining a successful budget, it does not mean that you should cut out all the wants completely. One thing that is recommended when it comes to keeping track of needs and wants is to use the 50/30/20 rule. This means that 50% of your income should be devoted to paying for needs, 30% of your income can go to buying your wants, and the last 20% should be added to your savings.

Plug the leaks in your spending

Small spendings can add up and end up having a huge impact on the success of your budget and can often lead to you thinking, “where did all of my money go.” Stopping these leaks in your spending will ensure that you meet the goals that you set in your budget and that you are spending your money wisely.

Some of the ways to plug these spending leaks include

Carry around a reusable water bottle to cut out needless spending on things to drink
When going shopping, make a list and stick to it—no impulse buying.
Carry cash instead of credit cards to ensure that you are only spending what you can afford
Get rid of subscriptions that you don’t use anymore or are just unnecessary.
Pack snacks from home to avoid higher prices at vending machines or gas stations
Use subscriptions to streaming services such as Netflix or Hulu instead of paying for cable.

Limiting the amount of impulse buying and needless spending is going to help you stick to your budget and meet your goals. It will also allow you to have a better understanding of where your money is going and not leave you with that “where did all that money go” feeling. From plugging these leaks, you are going to end up spending less money and be able to save more.

Financial Wellness

Home — Essay Samples — Economics — Money — How Students Can Manage Their Money

How to Manage Your Money as a Student

Categories: Money Personal Finance

About this sample

Words: 824 |

Published: Feb 8, 2022

Words: 824 | Pages: 2 | 5 min read

Cite this Essay

Let us write you an essay from scratch

450+ experts on 30 subjects ready to help
Custom essay delivered in as few as 3 hours

Get high-quality help

Prof. Kifaru

Verified writer

Expert in: Economics Law, Crime & Punishment

+ 120 experts online

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy . We’ll occasionally send you promo and account related email

No need to pay just yet!

Related Essays

2 pages / 1011 words

2 pages / 795 words

5 pages / 2457 words

2 pages / 944 words

Remember! This is just a sample.

You can get your custom paper by one of our expert writers.

121 writers online

How to Manage Your Money as a Student Essay

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

Related Essays on Money

Hold on, think to yourself for a second about this question “Can Money Buy Happiness”? You’d say “oh that’s obvious I’d just give you some money and you some money and now we’re best friends”! Not exactly, just give me a moment [...]

Money can't buy love or happiness. This assertion is a reminder of the profound truth that material wealth, while important for meeting basic needs, cannot replace the intangible and deeply fulfilling aspects of human life. In a [...]

Money makes the world go round. Throughout history, money has been the driving force behind human progress and development, shaping economies, societies, and political landscapes. This essay aims to explore the reasons why money [...]

Money is a crucial aspect of life, and saving it is a necessary practice that everyone should embrace. According to a recent survey, only 41% of Americans have saved enough money to cover unexpected expenses. This statistic [...]

Happiness and money, both are an important role in human’s life. There is a question that many people will argue about the impact from them, which have more benefit to people, it also means which is more important for people [...]

A key part of financial independence is being able to make your own decisions regarding your money. But what decisions are those, exactly? To answer that, ask yourself these questions: What do I most want to accomplish? [...]

Get Your Personalized Essay in 3 Hours or Less!

We use cookies to personalyze your web-site experience. By continuing we’ll assume you board with our cookie policy .

Instructions Followed To The Letter
Deadlines Met At Every Stage
Unique And Plagiarism Free

10 Tips to Spend Money Wisely

W e all want to be wise with our money, right? Sounds good in theory, but how do you actually put it into practice? Let’s take action today. These quick, little improvements can have a big impact over time.

I’ve used better spending habits to help me go from a zero net worth to having over a million saved. Let’s improve your spending today with these ten tips on how to spend money wisely:

1. Make a list of what you value.

The best way to spend more wisely is to align your spending with your values .

Are you even aware of your personal values?

Take a moment to write down the things that are most important to you in life. Is it security for your family? Is it success in business? Is it helping others?

Like me ( see my values ), you likely have a combination of values.

Write these values down and then ask yourself this question: “am I spending my money on things I value?”

Then, ask “am I spending my money on things that aren’t in my value system?”

Doing this little exercise will give you some clarity and help to guide you into thinking consciously about your spending.

2. Make a list of things you really enjoy.

Along the same lines as #1, you should be using your money to bring joy to your life. You define what “joy” is. Go ahead and write that down.

What brings you happiness? Identify those things and then ask yourself if you are spending your money in those areas. More importantly, ask yourself why you are spending on things that aren’t on that list.

Bottom line: avoid spending too much money on things that aren’t at the top of your “joy” list.

Related: It’s Okay to Spend Your Money on Things You Really Want

3. Make a list of places, things, or people that cause you to make poor spending choices.

Can you identify the triggers to poor spending in your life?

Think about your spending over the past couple of weeks.

When did you make the worst decisions (i.e., spending money you didn’t have, spending on things you don’t value, etc.)?
What was the cause of your poor choice?

If you can identify these weak points, then you can begin to live your life in a way that helps to avoid some of these spending hot spots.

“Too many people spend money they earned..to buy things they don’t want..to impress people that they don’t like.” –Will Rogers

4. Review your regular spending for things to eliminate.

When was the last time you wrote down your list of monthly bills? Take a moment to do a thorough spending review now.

List out all of your required spending for the month. This includes rent or mortgage, insurance, debt payments, utilities, services, etc.

Is there anything on that list that you don’t need or want?

It sounds absurd to ask such a question. However, I’ll be the first to admit that in the past, there were things on my list of monthly expenses that I didn’t need or want anymore.

Odds are you have one or two yourself. If you find something to eliminate, do it. There are several negotiation apps can help you identify expenses you may be able to eliminate.

5. Review your regular spending to identify things to reduce.

Next, take a second look at that list of monthly bills and see if there is a way to reduce the cost of any of them.

Could you call the provider and ask for a better rate?
Could you call a competing provider to see if you can reduce your rates by switching?

If it’s a debt, could you do a balance transfer or consolidation that would help you reduce your rates and eliminate debt more quickly?

6. Create a budget.

On a basic level, a budget is simply a plan for your money. If you know your expected income next month, write that number down. Then start applying that money to different things.

Start with taxes (if it isn’t already taken out), giving, and savings. Then move to basic necessities: housing, food, insurance, utilities, and transportation. Finally, apply the rest of your income to other things you need or want.

Open up an account with an online budgeting tool like Mint.com to streamline this process.

7. Start writing down each purchase you make.

Tracking brings awareness to any situation. Use your iPhone or another device to take spending notes throughout the day. There are Apps for that I’m sure.

Or simply carry around an old-school pad and pen to jot down your spending. Do this for a week and see if your spending improves.

Related: Use These Psychological Tricks to Spend Money Wisely

8. Switch to only cash.

If you have a severe problem with credit spending, this is the way to go. Some folks swear by this method even if they don’t necessarily have trouble with credit cards.

Like tracking your spending, going to a cash-only system , if only for a week, will bring a heightened consciousness level to your spending.

9. Implement a “sleep on it” rule.

Decide today that for any purchase over X amount, you will “sleep on it.” It could be one night, a week, thirty days, whatever.

Just allow some breathing room between your desire and your decision to buy. Obviously, this gives you time to evaluate the purchase against your values and your budget.

10. Put future spending on a calendar.

Pull out a calendar and look at your upcoming events and life changes. Will spending be necessary? Is so, then make a note of that and start building a list of future spending requirements.

This is somewhat different from a monthly budget because it looks a bit further out. This does two things: (1) it allows you to prepare by saving for the spending requirement, and (2) it allows you time to shop around for the best price and lock in the lowest rates.

Have more tips? Add them to the comments below.

Philip Taylor is a CPA, writer, entrepreneur, and founder of FinCon. Philip has been quoted and featured in multiple media outlets including The New York Times , The Washington Post , Forbes , Fox Business , and more . Connect with him on Twitter or LinkedIn .

41 Fun, Cheap and Free Things to Do in the Summer

Let’s have some fun! Concerts, vacations, and kids’ activities can add up quickly, leaving you with an empty…

024: Keeping the Personal in Personal Finance with Jen Hemphill

Jen Hemphill helps busy ambitious women transform their finances from being overwhelming to bringing joy, simplicity, and confidence….

6 Ways to Give Memorable Gifts (Without Going Into Debt)

The fine fellas at Optimal Finance Daily created an audio version of this post. Listen along using the…

My Mystery Shopping Experience: Such a Thing as Free Lunch?

Editor’s Note: I love it when people do experiments with their time and money. Especially in areas where…

Budgeting – An Easier, Smarter Way

This past month, I actually did a full blown budget. On or around January 1st I wrote down…

Our Destin, Florida Beach Vacation

We recently took a week long trip to the beaches of the Florida Panhandle region. This has long…

13 Comments

Sounds very complicated but with determination and right amount of discipline this is surely doable.

These are really great points! The sleep on it rule is really my favorite! It works best together with being aware of your budget!

Interesting story, Janette. Thanks for sharing.

Actually, if you tend to use a debit card (as I do), you don’t need to write down every purchase so much as keep your receipts.

Recently took a trip with only cash (#8). It was a bit scary to carry that much cash. What I found was the amount I spent on the trip was much less than normal. I paid for EVERYTHING in cash- from gas to hotel room to eating out to groceries. Next time I will just put $1000 in an account with a debt card, but I needed to know what it felt like to touch the money We travel to see family four to six times a year (#10). They all live between 1500 and 2000 miles from us. We spend, on an average, $1500 for the two of us on each trip. Now that we are retired, knowing that budget is important and paying in cash is the best way to handle it for me. After this trip I really realized that going on “other travel trips” (#3) are nearly impossible if our priority is to stay where we are and still see our family. We no longer journey to Target or the mall in our spare time (#3).The children, mom and grand baby are all worth it!(#1and 2). Well written numbered list!

Swith to only cash – you mentioned this is good for people who struggle with credit cards, but it’s also great if you struggle with DEBIT cards. We always seem to have enough in our checking account to spend on misc items with our debit card, but that money was allocated towards something else in our budget. Plus research shows that when you “swipe” your card to pay (debit or credit), you spend MORE money on purchases, many times without even remembering how much you actually spent. It’s much harder to part with cash. You can see it and feel it dwindling in your pocket (or envelope) as you spend it, knowing it won’t be replaced until the next budget cycle.

@Jason – Excellent point. I didn’t think about that but yes, long after you’ve stopped tracking you’ll have better awareness in general. @Jon – Some recommend a 30 day rule for larger purchases.

I like cash-only.

#9 is the single best piece of advice I have heard. Sleeping on it has saved me a nice sum of money. Typically, I end up waking up and realizing that I don’t really need to buy it!

I think the 7th rule is the best, because that way you actually think about what you’ve done instead of just forgetting about it. This will create valuable spending habits in the future.

love the “sleep on it rule.” Saved me bunches.

The sleep on it rule has always been a huge money saver for me! Even better is to have to save for it. I’ve always waited to buy big purchases until I’ve had the money and tried to find it online cheaper in the meantime!

At some point, we all need to create a budget to control our spending. This blog is actually helpful helpful to analyse my expenditure and sections where I can control my transactions. Someday, I might want to try the online budgeting tool to ease the process. I will need some dedication to follow these steps, but will surely try my best.

Comments are closed.

PRO Courses Guides New Tech Help Pro Expert Videos About wikiHow Pro Upgrade Sign In
EDIT Edit this Article
EXPLORE Tech Help Pro About Us Random Article Quizzes Request a New Article Community Dashboard This Or That Game Popular Categories Arts and Entertainment Artwork Books Movies Computers and Electronics Computers Phone Skills Technology Hacks Health Men's Health Mental Health Women's Health Relationships Dating Love Relationship Issues Hobbies and Crafts Crafts Drawing Games Education & Communication Communication Skills Personal Development Studying Personal Care and Style Fashion Hair Care Personal Hygiene Youth Personal Care School Stuff Dating All Categories Arts and Entertainment Finance and Business Home and Garden Relationship Quizzes Cars & Other Vehicles Food and Entertaining Personal Care and Style Sports and Fitness Computers and Electronics Health Pets and Animals Travel Education & Communication Hobbies and Crafts Philosophy and Religion Work World Family Life Holidays and Traditions Relationships Youth
Browse Articles
Learn Something New
Quizzes Hot
This Or That Game
Train Your Brain
Explore More
Support wikiHow
About wikiHow
Log in / Sign up
Finance and Business
Managing Your Money

How to Manage Your Money Wisely

Last Updated: March 20, 2024 Approved

This article was co-authored by Samantha Gorelick, CFP® . Samantha Gorelick is a Lead Financial Planner at Brunch & Budget, a financial planning and coaching organization. Samantha has over 6 years of experience in the financial services industry, and has held the Certified Financial Planner™ designation since 2017. Samantha specializes in personal finance, working with clients to understand their money personality while teaching them how to build their credit, manage cash flow, and accomplish their goals. There are 12 references cited in this article, which can be found at the bottom of the page. wikiHow marks an article as reader-approved once it receives enough positive feedback. In this case, 95% of readers who voted found the article helpful, earning it our reader-approved status. This article has been viewed 117,923 times.

Managing your money can seem like an impossible task, but that is only because you haven't taken the time to start managing it. Today, keeping your finances in order is easier than ever. With careful budgeting, smart saving, and some basic attention to your income and expense, you can manage your money wisely without getting an MBA.

Budgeting Your Money

Step 1 Make a list of your guaranteed monthly income.

Any additional money (tips, bonuses, etc.) should be considered "extra." By planning for only your guaranteed income you ensure that you will have enough money to cover living expenses should anything happen. It also leads to the happy "surprise" of extra money when it comes.

Step 2 Track all of your expenses each month.

If you spend cash, keep the receipt and make a note of what you bought.
Apps like Mint, Mvelopes, HomeBudget, and more allow you to sync your credit cards, bank accounts, and investments to one place, providing graphs of your spending based on categories. This is a great way to get a view of your finances with very little work needed.

Step 3 Break your expenses down into fixed, essential, and non-essential.

Fixed Expenses: These are things that do not change month to month but must be paid, including rent, car/loan payments, etc.
Essential Expenses: These include food, transportation, and utilities -- anything that you need to live but whose cost changes from month to month.
Non-Essential Expenses: This is everything else, such as movie tickets, drinks with friends, and toys/hobbies. This is the biggest place most people realize they can save money.

Step 4 Keep these records every single month.

Place your month income and expenses side-by-side in a spreadsheet. You can also write them down in a journal or notebook. Having these numbers next to each other lets you see how much money you have left over to spend.

Step 5 Calculate how much money you have left over after fixed and essential expenses.

10% is the bare minimum you should be putting aside into savings. This will quickly grow, and often will not hurt you much in the short-term. That said, this money should also be used to pay off any debt if it is large and interest payments are big.
20% is considered a good, safe amount of savings. This ensures that, ever 5-6 months, you end up with enough saved income to protect you for a full month if something happens to you. It allows you to save a lot of money without drastically affecting quality of life.
30% is the goal everyone should shoot for. This allows you to save money for retirement, big activities like vacations, and large purchases (cars, college, etc.). It may, however, limit what you can afford in the short term. [3] X Research source

Spending Smartly

Step 1 Set a personal budget and stick to it.

What are you priorities in life -- good food, vacations, or just time with the family? Knowing what you personally care about buying can help avoid costly impulse buys.
What things in your life can you cut and hardly notice -- such as a scone to go with your morning coffee, the 200 cable channels you hardly watch, bottled water, etc?

Step 2 Only use credit cards for bills you know you can pay that month.

Read all of the agreement form before signing up for your card. What is the monthly interest rate? How is minimum payment calculated? Are there annual or overdraw fees?
Always try and pay more than the monthly minimum. If you pay the entire balance each month, for example, you won't pay any interest down the road.
One credit card is enough -- juggling multiple bills and statements is a surefire way into credit card debt.
Curb spending on credit so that you stay within 30-40% of your limit. You should never get close to your limit, as this is often difficult to repay without exorbitant interest rates. [5] X Research source

Making grocery lists will keep you on track in the store, helping save money and plan meals effectively so no food is thrown out.
Never buy something just because it is on sale -- you are still spending money, no matter how much the advertisement talks about "savings." [6] X Research source

Step 4 Do your research before making any big-ticket purchases.

Browse online and set an appropriate spending cap -- the absolute maximum you will spend on a car/house/etc. Be very strict about this cap, no matter what a salesman says.
Look up how much the object should cost and memorize the number.
Check the prices at 2-3 different vendors to compare them. If you feel comfortable negotiating, you can mention to a vendor that you've found a similar or better price and ask them to lower theirs.
If you have time to spare, wait and look for sales. Typically, for example, car dealerships offer sales in the summertime. [7] X Research source

When buying food you only save money if you don't throw any out, otherwise you simply paid more money for the same amount you normally eat.
Learn to read "unit price" which is the small label in stores that says "price per pound" or "price per ounce." Bulk items have a lower unit price, which means you are getting more product for less money.

Step 6 Take out the money you can spend in advance if you have trouble saving.

Saving for the Future

Step 1 Aim to have 3-6 months living expenses, at a minimum, saved at all times.

What are your fixed and essential expenses for one month? Multiply this number by 3-6 months to get your minimum emergency savings.

Step 2 Make a list of your saving goals.

Start saving for the holidays 5-6 months in advance. Even $50 a month will give you a cushion of $300 for gifts by December.
Saving to send your kids to go to college can't start early enough. Make separate savings accounts for them when they're born and make saving a priority.

Step 3 Invest in your future early and often.

The exception to this is high-interest credit card debt. If you find yourself sinking into a hole of credit card payments or are only able to pay interest, you may save more money by taking 2-3 months to pay them off.

Step 5 Put away profits and raises in savings accounts or investments.

When you get a raise, add that amount to your monthly savings. You will keep your same quality of life and save much more in the long-term. [13] X Research source

Step 6 Look into employee-matching options.

Never remove money from a 401k or long-term investment before it matures -- you may have to pay a fee or relinquish all the gains you've made.

How Can I Be Smarter With My Money?

Expert Q&A

Managing your money wisely is, above all, about restraint. Many of the benefits of careful financial planning don't come true for 20 or 30 years, making it seem better to spend money right now. Think of saving, instead, of spending on yourself and your future. Thanks Helpful 3 Not Helpful 0

Investments are inherently risky -- you never know 100% if it will pan out. Talk to a financial adviser if you want to invest a significant amount of money in anything. Thanks Helpful 6 Not Helpful 2

↑ Samantha Gorelick, CFP®. Financial Planner. Expert Interview. 6 May 2020.
↑ http://www.forbes.com/sites/robertberger/2015/03/03/how-much-of-your-income-should-you-save/
↑ https://www.mappingyourfuture.org/money/creditcards.cfm
↑ http://mywifequitherjob.com/how-to-build-wealth-by-spending-money-wisely/
↑ http://www.goodhousekeeping.com/life/money/advice/a19098/125-tips-to-save-money/
↑ http://www.sheknows.com/living/articles/808185/tips-on-how-to-save-money-and-spend-wisely
↑ http://www.investopedia.com/articles/pf/08/pay-in-cash.asp
↑ http://www.bankrate.com/finance/savings/how-big-should-emergency-fund-be.aspx
↑ http://beginnersinvest.about.com/od/retirementcenter/a/060104a.htm
↑ http://www.kiplinger.com/article/retirement/T047-C000-S002-how-to-retire-rich-4-smart-steps-at-ages-21-35.html
↑ http://www.investopedia.com/articles/retirement/07/plan_retirement.asp

About This Article

The key to managing your money wisely is only spending what you can afford and saving for a rainy day. Keep track of your income and expenses so you know how much money you have leftover to spend. Try to save around 20 percent of your income for future investments and purchases. It's also a good idea to keep 3 to 6 months’ worth of living expenses in a savings account in case of an emergency, like losing your job or having to pay for extra medical bills. Only use credit for bills and purchases you know you can afford at the end of the month. That way, you won’t end up paying extra interest. When you’re making big purchases, like a new car or computer, do plenty of research so you can find the best deal and save money. For more tips, including how to invest your money for the future, read on! Did this summary help you? Yes No

Send fan mail to authors

Reader Success Stories

Tumelo Njabulo

Jul 12, 2018

Did this article help you?

Laura Walsh

Aug 9, 2017

Annagrace Kiienyi

Jun 24, 2020

Meshack Kumalo

Sep 12, 2019

Lindy Grace Olarte

Jan 4, 2017

Featured Articles

Watch Articles

Terms of Use
Privacy Policy
Do Not Sell or Share My Info
Not Selling Info

wikiHow Tech Help Pro:

Level up your tech skills and stay ahead of the curve

What are your financial priorities?

Answer a few simple questions, and we’ll direct you to the right resources for every stage of life.

Welcome back. Your personalized solutions are waiting.

Welcome back. Here's where you left off.

8 simple ways to save money

Saving is easier when you have a plan—follow these steps to create one

Read, 4 minutes

Sometimes the hardest thing about saving money is just getting started. This step-by-step guide can help you develop a simple and realistic strategy, so that you can save for all your short- and long-term goals.

Record your expenses

The first step to start saving money is figuring out how much you spend. Keep track of all your expenses—that means every coffee, household item and cash tip as well as regular monthly bills. Record your expenses however is easiest for you—a pencil and paper, a simple spreadsheet or a free online spending tracker or app. Once you have your data, organize the numbers by categories, such as gas, groceries and mortgage, and total each amount. Use your credit card and bank statements to make sure you’ve included everything.

Bank of America clients can access the Spending & Budgeting tool in Mobile and Online Banking to automatically categorize transactions for easier budgeting.

Include saving in your budget

Now that you know what you spend in a month, you can begin to create a budget . Your budget should show what your expenses are relative to your income, so that you can plan your spending and limit overspending. Be sure to factor in expenses that occur regularly but not every month, such as car maintenance. Include a savings category in your budget and aim to save an amount that initially feels comfortable to you. Plan on eventually increasing your savings by up to 15 to 20 percent of your income.

Find ways to cut spending

If you can’t save as much as you’d like, it might be time to cut back on expenses. Identify nonessentials, such as entertainment and dining out, that you can spend less on. Look for ways to save on your fixed monthly expenses, such as your car insurance or cell phone plan, as well. Other ideas for trimming everyday expenses include:

Search for free activities

Use resources, such as community event listings, to find free or low-cost entertainment.

Review recurring charges

Cancel subscriptions and memberships you don’t use—especially if they renew automatically.

Examine the cost of eating out vs. cooking at home

Plan to eat most of your meals at home, and research local restaurant deals for nights that you want to treat yourself.

Wait before you buy

When tempted by a nonessential purchase, wait a few days. You may realize the item was something you wanted rather than needed—and you can develop a plan to save for it.

Set savings goals

One of the best ways to save money is to set a goal . Start by thinking about what you might want to save for—both in the short term (one to three years) and the long term (four or more years). Then estimate how much money you’ll need and how long it might take you to save it.

Common short-term goals: Emergency fund (three to nine months of living expenses), vacation or down payment for a car

Common long-term goals: Down payment on a home or a remodeling project, your child’s education or retirement

Set a small, achievable short-term goal for something that’s fun and goes beyond your monthly budget, such as a new smartphone or holiday gifts. Reaching smaller goals—and enjoying the reward you’ve saved for—can give you a psychological boost, making the payoff of saving more immediate and reinforces the habit.

Determine your financial priorities

After your expenses and income, your goals are likely to have the biggest impact on how you allocate your savings. For example, if you know you’re going to need to replace your car in the near future, you could start putting away money for one now. But be sure to remember long-term goals—it’s important that planning for retirement doesn’t take a back seat to shorter-term needs. Learning how to prioritize your savings goals can give you a clear idea of how to allocate your savings.

Pick the right tools

There are many savings and investment accounts suitable for short- and long-term goals. And you don’t have to pick just one. Look carefully at all the options and consider balance minimums, fees, interest rates, risk and how soon you’ll need the money so you can choose the mix that will help you best save for your goals.

Short-term goals

If you’ll need the money soon or need to be able to access it quickly, consider using these FDIC-insured deposit accounts:

A savings account
A certificate of deposit (CD) , which locks in your money for a fixed period of time at a rate that is typically higher than that of a savings account

Long-term goals

If you’re saving for retirement or your child’s education, consider:

FDIC-insured individual retirement accounts (IRAs) or 529 plans, which are tax-efficient savings accounts
Securities, such as stocks or mutual funds. These investment products are available through investment accounts with a broker-dealer 1

Make saving automatic

Almost all banks offer automated transfers between your checking and savings accounts. You can choose when, how much and where to transfer money or even split your direct deposit so that a portion of every paycheck goes directly into your savings account. The advantage: You don’t have to think about it, and you’re less likely to spend the money instead. Other easy savings tools include credit card rewards and spare change programs, which round up transactions to the nearest dollar and transfer the difference into a savings or investment account.

With Mobile & Online Banking, Bank of America clients can easily set up automatic transfers between accounts.

Watch your savings grow

Review your budget and check your progress every month. That will help you not only stick to your personal savings plan, but also identify and fix problems quickly. Understanding how to save money may even inspire you to find more ways to save and hit your goals faster.

1 Remember that securities are not insured by the FDIC, are not deposits or other obligations of a bank and are not guaranteed by a bank. They are subject to investment risks, including the possible loss of your principal.

The material provided on this website is for informational use only and is not intended for financial or investment advice. Bank of America Corporation and/or its affiliates assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment management. ©2024 Bank of America Corporation.

What to read next

More from bank of america, bank of america life plan® helps you create a plan that’s tailored to your goals..

We're here to help. Reach out by visiting our Contact page or schedule an appointment today.

Mobile Banking requires that you download the Mobile Banking app and is only available for select mobile devices. Message and data rates may apply.

The Spending & Budgeting tool is currently available to clients with a personal checking or savings account, credit card, a linked Merrill investment account, as well as a Small Business checking or savings account.

Fees apply to wires and certain transfers. See the Online Banking Service Agreement for details. Data connection required. Carrier fees may apply.

You're continuing to another website

You're continuing to another website that Bank of America doesn't own or operate. Its owner is solely responsible for the website's content, offerings and level of security, so please refer to the website's posted privacy policy and terms of use. It's possible that the information provided in the website is available only in English.

Va a ir a una página que podría estar en inglés

Es posible que el contenido, las solicitudes y los documentos asociados con los productos y servicios específicos en esa página estén disponibles solo en inglés. Antes de escoger un producto o servicio, asegúrese de haber leído y entendido todos los términos y condiciones provistos.

Advertising Practices

We strive to provide you with information about products and services you might find interesting and useful. Relationship-based ads and online behavioral advertising help us do that.

Bank of America participates in the Digital Advertising Alliance ("DAA") self-regulatory Principles for Online Behavioral Advertising and uses the Advertising Options Icon on our behavioral ads on non-affiliated third-party sites (excluding ads appearing on platforms that do not accept the icon). Ads served on our behalf by these companies do not contain unencrypted personal information and we limit the use of personal information by companies that serve our ads. To learn more about ad choices, or to opt out of interest-based advertising with non-affiliated third-party sites, visit YourAdChoices powered by the DAA or through the Network Advertising Initiative's Opt-Out Tool . You may also visit the individual sites for additional information on their data and privacy practices and opt-out options.

To learn more about relationship-based ads, online behavioral advertising and our privacy practices, please review the Bank of America Online Privacy Notice and our Online Privacy FAQs .

Connect with us

Your Privacy Choices

Some materials and online content may be available in English only.

Bank of America, N.A. Member FDIC. Equal Housing Lender

Investment products:

Bank of America and its affiliates do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.

Home » Teens

Spending for Teens

Learn how to spend your money wisely to budget, save, and still afford all the fun things you want.

Teen life is expensive. There’s shopping with friends, mini-golf with the cute new neighbor (who’s only a friend), and snacks after school.

Before you know it, it all adds up! And if there’s one thing you know by now is that your parents aren’t made of money. If you had a penny for every time you’ve heard that one, spending wouldn’t be an issue! But it doesn’t have to be.

We’re not saying that it’s all gonna be OK, even if you splurge all your allowance on bubble tea. That’s not how it works. But if you figure out a way to stay organized and creative about how you spend, you’ll be able to stretch your dollars.

We’ll show you some useful tips and share some good ideas on how you can make your money last longer without spending all your Friday nights at home. And if you make smart spending a habit, you could end up pretty wealthy one day. But guess what? You’ll probably still tell your own kids that you’re not made of money.

Why Teens Need to Budget

Most people don’t like the word budget. As soon as they hear it, they cringe. In our book, though, that’s the quickest way to end up broke before the end of the week.

The sooner you learn how to budget your money, the better choices you’ll make in your financial life. Why? Because a budget helps you realize that some things are more important to you than others.

Let’s say your parents go out of town for the weekend and leave you with $100. But you need to make that money last for a few days. You’re probably not gonna run and spend it at the mall, right? That would be silly when you have great clothes in your closet.

A smarter way to spend that money would be on food and transportation. You’d probably also want to set some aside in case of an emergency.

That’s it! You just learned how to budget. It’s all about deciding what matters most to you and how much you want to spend on those things. As you can see, budgeting isn’t that difficult. The tough part, TBH, is sticking to the plan.

How to Develop Smart Spending Habits

The road to financial success can feel long. And there are a lot of detours along the way. But there are also lots of hacks to make it easier. These are a few of our favorite tips to help you learn how to manage your money while you’re still young.

Set Meaningful Goals

The most important part of budgeting is figuring out what’s important to you. Once you’ve decided what matters most, it’s easy to choose how much you’ll spend on things.

For example, if you want to buy a car by the time you’re 16 (and your parents are OK with that), you need to start saving. So, next time your friend wants to hit the bowling alley, you may decide to pass. It’s not that you don’t wanna hang. It’s that those $50 could get you that much closer to your new wheels.

Make Compromises

Having a budget doesn’t mean that you’ll pass on all the fun. It just means that you have to get creative.

Instead of meeting your friends at the pizza shop and then hitting the movie theater, you might wanna invite them over to your place. You can grab some frozen pizzas at the grocery store and stream a movie on Netflix. It’s just as fun and way cheaper.

Reward Yourself

It might seem contradictory, but focusing too much on your budget can also backfire. At times, it can start to feel like a chore. And nobody likes that feeling.

To keep yourself motivated, try rewarding yourself now and then. You can even plan ahead of time and work it into your budget, so you have something to look forward to. Need some ideas on how to treat yourself without breaking the bank? Check these out:

Have a picnic at the park. Get some yummy snacks and meet up with your friends for some fun lawn games.
Buy yourself a special treat. Decide how much you want to spend ahead of time and challenge yourself to find something awesome without going over budget.
Get a disposable camera and have a photo shoot with your pals.
Hit the thrift store and find some cool vintage records to play at home.
Get a new phone case. It’s a great way to feel like you have a new phone, for a fraction of the cost.

Experiment with Different Budgeting Methods

The great thing about being a teen is that you still don’t have many financial obligations. This freedom means that you can try different budgeting techniques and find the one that works for you. Once you’ve found a method that inspires you, it’s easier to feel excited about budgeting.

Some of the most popular budgeting systems include:

Pay Yourself First : If you have a clear savings goal, this is a good one for you. It literally means you put money in your savings account before anything else. Then, you decide how you’ll spend the rest of your money.
Zero-Based Budgeting : This one’s best for big spenders. If you plan how you’ll use every dollar in your account, you’ll be less tempted to spend on unimportant things. The great thing about this one is that you can include anything in your budget. As long as you plan ahead of time.
50/30/20 Rule : This strategy breaks your money up by percentages. The rule is that 50% of your income should cover your needs, 30% is for your wants, and 20% is for savings. Stick to the percentages and you’ll manage your money wisely.

This tip isn’t an excuse to spend more time on your phone. It’s using technology to keep track of your spending habits. There are lots of budgeting apps out there that help you do this.

Once you’ve monitored your spending for a couple of months, you can better understand where you’re slacking and where you’re doing well. This monitoring helps you adjust your budget and keep a close eye on the places where you need more discipline.

When you know how hard it is to earn money, you immediately become smarter about how you spend it. And these days, there are tons of ways for teens to make money .

With your parents’ permission, you can look for a summer or a part-time job near home. Many businesses hire teenagers and are willing to work around your schedule.

If that’s not an option, you can also find gigs or start your own business. Take a look at these ideas:

Sell crafts or used clothes online
Manage the social media account for a local business
Babysit your younger family members
Referee kids’ sports leagues
Mow your neighbor’s lawn

The Role Your Parents Play in Spending Your Own Money

If you have questions about how to spend your money, you can always ask your parents. They may be able to help out or point you in the right direction. But, at the end of the day, you’re the one who’s responsible for your money.

The great news is that everybody messes up sometimes — even adults. If you blow your budget in one day, you have to learn from your mistakes. It’s part of learning how to spend responsibly.

Spending Lingo

Learning some basic terms will help you in your financial journey. These are some important words to understand if you want to get good at budgeting and smart about spending:

Fixed Expenses : These are costs that don’t change from one month to the next. For example, your car payment or rent.
Variable Expenses : Costs that aren’t always the same. Like your gas or your groceries.
Opportunity Cost : What you give up when you choose something else. Buying something is always a trade off, because you could’ve used the money for something else. That next best choice is your opportunity cost.
Financial Planning : Creating a plan for how you’ll spend and invest your money.

Best Books About Spending for Teens

Staying on top of your money is a great habit. With these books in your home library, you’ll learn more tips and become better at managing your money. If you want more book recommendations, check out our complete list of money books for teens .

Most Entertaining

The author of I Want More Pizza understands that one slice is never enough! In this easy-to-read book, you’ll get great lessons on how to budget your money and a solid understanding of how money works.

Not Just For Girls

Clever Girl Finance is more than just a book. It’s a whole platform that includes an excellent Insta account and fun TikTok videos packed with practical advice to manage your money and grow your wealth.

Comprehensive Money Guide

Go beyond budgeting basics with Smart Spending: The Teen’s Guide to Cash, Credit, and Life’s Costs . As the title suggests, it covers more than just managing money. This handy guide also talks about credit and what it costs to live life as an adult.

Learning how to manage your money now can save you many headaches as an adult. You should feel pretty proud of yourself for wanting to make good decisions and spend your money wisely. If you keep up the good habits, this could be the start of an extraordinary financial journey!

5 Easy Ways to Take Control of Your Personal Finances

Kiara Taylor

Managing your money doesn’t have to be overwhelming.

Don’t let your finances stress you out to the point of inaction. Instead, take back control by following the steps below:

Start budgeting. But here’s the key: Don’t use your budget to set unrealistic goals about how much you are going to save and how much extra money you will earn. Instead, aim to make it an accurate description of how your finances work. See where you could be spending more or spending less.
Create an emergency fund. Putting aside $50 a month can really add up. You should aim to have at least $1,000 in your fund until you are out of debt.
Be honest with yourself. The financial gap resulting in your debt might be caused by a number of factors – you may not be earning enough, or you may be spending too much. You need to name the problem to figure out the right long term solution.
Ask for help. There are plenty of services out there that can help you take back control — from financial planning services to debt management advisors to credit counseling services.

Where your work meets your life. See more from Ascend here .

The last year has been a very difficult one. Not only have we had to deal with travel restrictions, lockdown orders, and fears of getting sick — many of us have also been struggling financially. In fact, research suggests that financial stress is at an all-time high in America, a phenomenon explained by the numerous hiring freezes and layoffs brought on by the pandemic.

KT Kiara Taylor has more than 10 years of experience in finance, ranging from fixed income to emerging markets. She enjoys writing on the impact of both micro and macro trends on global finance, and has contributed to Investopedia , The Balance , and Crunchbase .

Partner Center

Intelligence

8 tips for spending time wisely, the idea behind the expression "time is money.".

Posted April 6, 2020

Free for commercial use No attribution required

Time and money are arguably life’s most valuable resources. One of the great laws of economics is that time equals money. What really matters is to spend it wisely. In fact, you can spend no money but your time as a gift, such as time spent with family.

The phrase "time is money" is usually credited to Benjamin Franklin, who used it in an essay ( Advice to a Young Tradesman , 1748). It means time is a valuable resource. He encouraged people to treat time like money. However, most people think about time and money in vastly different ways.

1. Time is our most scarce resource. Time is the ultimate scarce resource, yet we act as if we have unlimited time. Poor or rich, we all have 24 hours a day, 7 days a week. Thus, each of us faces the choice of how to spend our time. In a world of scarcity, choosing one thing means not being able to do something else.

2. The price of convenience. In economics, price is a much broader concept. Price includes not only the monetary cost of purchasing a product but also the time associated with buying that product. For example, overnight delivery, and convenience stores all charge premiums because of the inherent value we place on our time.

3. The value of time varies from person to person. Time is relatively scarce for people with higher incomes, partly because their time is more valuable. So, to have lots of time, rich people hire other people to do their, say, household chores. On the other hand, a nonworking person may spend more time on household chores.

4. The value of time in good economic times. The value of time is higher during good economic times. Evidence shows that people tend not to take care of themselves in boom times (Ruhm, 2007). For example, a 1 percent decrease in the unemployment rate corresponds to an additional 3,900 deaths in the United States in a given year. People tend to drink too much, eat out often, exercise less, and skip medical check-ups because of work-related time commitments. So people work more and do less of the things that are good for them. On the other hand, in bad economic times health-enhancing activities such as exercise and social interactions increase.

5. Price of delay. People are not equally patient. Some like the present, others like the future. A myopic person ranks immediate pleasure much higher than valuable delayed rewards. For example, social media is immediately available, and it is the cheapest way of avoiding boredom . In contrast, reading and conversation are demanding in terms of effort and motivation .

6. Cultural attitude toward time. Attitudes toward time and its value differ across cultures (Levine, 1997). For example, being late for an appointment, or taking a long time to get down to business, is the accepted norm in most Middle Eastern and some Asian counties. People in bigger cities walk faster than their counterparts in smaller cities. And while in a grocery store, they spent less time chatting with clerks and other shoppers.

7. Time cannot be stored. One of the reasons we give little thought about how we use our limited resources is that we cannot save time. Time moves on whether we choose to spend it or not. You can’t bottle time and exchange it for an object or event. However, when people are made aware of their mortality they wonder if they did make the most of their lives.

8. Buying time to promote happiness . What you do with your time also matters for your day-to-day moods. You can improve your happiness by putting your money where you spend most of your time (Whillans et al., 2017). For example, buying a new pillow or a nice bed could help you to get a good night’s rest. You can also outsource “disliked” tasks. This can allow you to maximize the time you get to do the things you love (e.g., cooking) and minimize the time you have to spend doing what you hate (e.g., gift-wrapping, housecleaning).

In sum, time is anything but free. As a nonrenewable resource, time is quite expensive. Some people fail to realize that time is scarce, hence oblivious about its opportunity cost. They do their best to think of their time as unlimited, and unlimited goods have little value. Knowing that time is finite encourages us to ask how we are using our time. Do we want to spend these precious moments on social media or spend that time learning something new? Skills and knowledge take time so the more time you spend on them, the more you improve.

Levine, R. V. (2020). Time and culture. In R. Biswas-Diener & E. Diener (Eds), Noba textbook series: Psychology. Champaign, IL: DEF publishers.

Ruhm CJ. (2007) A healthy economy can break your heart. Demography. Nov;44(4):829-48.

Whillans, A. V., Weidman, A. C., & Dunn, E. W. (2016). Valuing time over money is associated with greater happiness. Social Psychological and Personality Science, 7(3), 213-222.

Shahram Heshmat, Ph.D., is an associate professor emeritus of health economics of addiction at the University of Illinois at Springfield.

Find a Therapist
Find a Treatment Center
Find a Psychiatrist
Find a Support Group
Find Online Therapy
United States
Brooklyn, NY
Chicago, IL
Houston, TX
Los Angeles, CA
New York, NY
Portland, OR
San Diego, CA
San Francisco, CA
Seattle, WA
Washington, DC
Asperger's
Bipolar Disorder
Chronic Pain
Eating Disorders
Passive Aggression
Personality
Goal Setting
Positive Psychology
Stopping Smoking
Low Sexual Desire
Relationships
Child Development
Therapy Center NEW
Diagnosis Dictionary
Types of Therapy

Understanding what emotional intelligence looks like and the steps needed to improve it could light a path to a more emotionally adept world.

Emotional Intelligence
Gaslighting
Affective Forecasting
Neuroscience

How To Spend Money Wisely Essay Example

Pages: 6 (1392 words)
Published: July 21, 2016
Type: Essay

Do you hate it when you really need money, but your wallet is empty? No matter how little or how much money you have, spending it wisely is a good idea. But how do you spend money wisely? People actually tend to overspend in a few specific areas. So,following the steps below will improve your overall pocketbook health. First, come up with a budget. Financial experts suggest you track your spending for a few months so that you start work on your budget knowing where your money is going. If you are bad about saving receipts for cash purchases, keep a notebook with you, to write down all cash purchases as you make them.

Additionally, make a list of your monthly expenses, using your bills and the information you gather. Review this list

to determine where you can reduce expenses and by how much. Therefore, avoid impulse buying. Before making any purchase, ask yourself a few simple questions, and be honest with your answers. Only move on to the next question if you can answer yes to the current one. If you cannot get all the way through the questions, it is probably an impulse buy and you should pass it up. You should think about the things in your life that you tend to spend the most money on.

has been more than a year since you purchased your cell or home phone service, cable or satellite package, internet service, or car, home, or health insurance, shop around and make sure you are still getting the best deal. Moreover, Research large purchases before buying.

Never purchase anything that costs more than $200 without conducting some research first. The more expensive the item, the more research you will want to conduct. Your research should compare brands, prices, and quality so that you can determine which product is the best for you and your budget. Some reputable places to start your research include. Money doesn’t grow on trees. So, we must work hard to find money Managing your money wisely is one of the most important ways to gain a level of financial stability and independence.

Regardless of your income level, there are intelligent and manageable ways to spend money, and there are many ways that can leave you behind the eight ball and unable to pay the bills. If you’ve never had lessons on money management or have simply forgotten them over time, here are a few very simple steps you can take to put you and your bank account on the right track to financial stability and comfort for you and your family. 1. Don’t Spend it All It seems pretty simple, but spending less than you earn is an essential first step to stabilizing your situation and having something left over at the end of the month.

The easiest way to track this is on a monthly basis. Chances are you already know how much money you earn in a

month. Now get all your monthly bills you have to pay every month and add those up. After that, figure out how much money you spend on groceries, entertainment, and other day-to-day expenses throughout the month. Once you have it all added up, you’ll know if you’re saving money at the end of the month or ending up with a deficit. If you have a deficit at the end of the month, you are probably buying those extra items on a credit card with interest rates that will make you owe more money in the long run.

Stay away from a situation like that by being sure you spend less than you make every month. 2. Don’t Waste Money Having fun is important and everyone deserves to spend a little bit on entertainment and recreation every once in a while, but there are places in almost every budget where you can cut back without decreasing your quality of life. Take an honest look at what you spend your money on and find those things that are essential (mortgage, medical bills, insurance, rent, car insurance, etc. ). After that the most important thing is food.

That’s a little more complicated, because you have to buy food, but you probably don’t have to buy all the food you’re buying. See where you can cut out on junk food and other things you don’t need. Cook at home more often and eat out less. Use generic brand name products rather than popular brand names. All of this will save you money in the long run. If there are other places in your entertainment budget that you

can cut costs, do it. 3. Start Saving Early Once you’re able to put away some extra money at the end of the month, don’t spend it all at once on something. Instead, invest it in the future of your family and your own retirement.

If you put your money into a high yield savings account now it will end up paying off by a lot in the long run. How To Spend Your Money Wisely It is always important and necessary for you to understand your personal finances. Whether you like it or not, being able to learn more about your money makes you more confident in the decisions that you make in the future. When you understand these tips, your financial situation will improve. Build a budget based on your monthly income and costs. A budget is a tool to help you plan, prioritize, and manage your income and expenses.

Review your budget often and update it when you are experiencing a change in income and expenses. The key to building an effective budget is knowing exactly how much money your family earns every month. Everything you spend money on should be accounted for. Never spend more money than you have available. Take the time to record your expenses. Making a list of expenditures can help you to visualize where all of the money goes. Don't overlook expenses that don't occur monthly but are paid quarterly or twice a year. Add surprise expenses to your list, such as emergency or repair costs.

You should also include leisure and entertainment expenses on your list. Doing all of this will ensure that

you have an accurate portrayal of your expenses. Once you have established a detailed record of your household cash flow, you can create a feasible budget. Eliminate things from your budget that are not necessary. You can keep a lot of money in your pocket if you stop buying your coffee at a coffee shop or buying your lunch. Upgrades and improvements to your house can save money on your utility bills. Consider getting new appliances, like efficient washing machines or dishwashers, that use less water.

When it comes to delivering hot water, tank heaters are less efficient than on-demand or inline heaters. You should have the pipes in your home checked in order to find any leaks that may be costing you extra on your water bill. You may want to think about upgrading appliances with energy smart ones. Appliances that have circuitry that regulates their energy use save a lot of money over time. You should also unplug unused electrical devices when they are not in use. In the long run, things with the indicator lights can use quite a bit of electricity.

Another project that you can undertake is to increase insulation. You can do this by improving your walls, ceiling, and roof. You will find that your home will be able to store more heat, which can save money. This might take a lot of time, but the money saved is worth it. Although some of these suggestions may bring with them significant investments, it is still certain that they will be of worth in the long run. The money you spent on the initial invest will quickly be

returned to you in the form of lower bills. Over time, you will have a lot more money and financial freedom.

Managing Finance Analysis Argumentative Essay Example
How to create a budget Essay Example
Money for Morality Essay Example
Master Budget Essay Example
Using The View That From 1833 To 1846 Essay Example
Credit Cards Essay Example
Deficits, Surpluses, and the National Debt Essay Example
Forensic Science Example Essay Example
Rudi Gassner and the Executive Committee Essay Example
The Effect of Deregulation Policies Essay Example
Are Actors and Professional Athletes Paid Too Much Essay Example
Debt Vs. Equity Financing Analysis Essay Example
Deutsche Brauerei Analysis Essay Example
Stock Market Reflection Persuasive Essay Example
Islamic Inter Bank Money Market Rate Essay Example
Budget essays
Bank essays
Banking essays
Corporate Finance essays
Credit Card essays
Currency essays
Debt essays
Donation essays
Enron Scandal essays
Equity essays
Financial Accounting essays
Financial Crisis essays
Financial News essays
Financial Ratios essays
Financial Services essays
Forecasting essays
Foreign Exchange Market essays
Free Market essays
Gold essays
Investment essays
Legacy essays
Loan essays
Market Segmentation essays
Money essays
Personal finance essays
Purchasing essays
Retirement essays
Shareholder essays
Stock Market essays
Supply And Demand essays
Venture Capital essays

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards.

Enter your topic/question
Receive an explanation
Ask one question at a time
Enter a specific assignment topic
Aim at least 500 characters
a topic sentence that states the main or controlling idea
supporting sentences to explain and develop the point you’re making
evidence from your reading or an example from the subject area that supports your point
analysis of the implication/significance/impact of the evidence finished off with a critical conclusion you have drawn from the evidence.

Unfortunately copying the content is not possible

Tell us your email address and we’ll send this sample there..

By continuing, you agree to our Terms and Conditions .

EssayBasics.com
Pay For Essay
Write My Essay
Homework Writing Help
Essay Editing Service
Thesis Writing Help
Write My College Essay
Do My Essay
Term Paper Writing Service
Coursework Writing Service
Write My Research Paper
Assignment Writing Help
Essay Writing Help
Call Now! (USA) Login Order now
EssayBasics.com Call Now! (USA) Order now
Writing Guides

How I Spent My Pocket Money (Essay Sample)

Table of Contents

Introduction

If you had your own pocket money, how would you spend it?

This essay focuses on how to spend money, and how to do so wisely. In this piece, we share a person’s experience of being taught to spend money wisely and what he would buy when he was given a regular allowance.

Writing an essay on what you would spend your money on? We can help. Go to EssayBasics.com to learn more about our essay writing services . We can help you express yourself by pairing you with a writer who has some experience in your chosen topic.

How I Spend My Money essay

One of the most exciting events in a young one’s life is when their parents give them an allowance. No matter the amount, an allowance gives us the opportunity to spend on small things that make us happy as a child.

The joy that an allowance brings is more than just the amount itself. It’s really rooted in the experience one gets in choosing how to spend it. First, there’s the anticipation of receiving an allowance. Next, there’s the excitement of thinking about all the things you’ve been wanting to get for yourself. Third, there’s the delight of actually receiving the allowance. Finally, there’s the sheer thrill of choosing what to buy and taking it home.

How and when an allowance is given, and how much is gifted to the child, depends on the guardians’ principles. There are those who provide an allowance for children to buy basic needs. But there are some who might give a little extra to give the child an opportunity to learn how to handle money well.

It must be said that not all children are privileged to have an allowance to spend on themselves. If they come from a poor family, the guardians may not have any extra finances to give. They may save up for this just once in a while.

I am very blessed that my parents gave me an allowance on a regular basis. My allowance has really taught me financial stewardship at a very young age. They also allowed me to make decisions regarding my finances, even if I made mistakes.

Saving Money at a Young Age

While my allowance isn’t a fixed amount, I have since learned that the first thing I should do is set aside a portion of it for savings. I get a third of whatever amount I get and earmark it for saving.

To make sure that I won’t be tempted to use it, my mom helped me open a bank account where I deposit the money. They opened a time deposit account, which means I cannot just withdraw from it anytime. Whenever I hesitated to go to the bank, my dad would remind me that my small deposits would turn into one big bulk of cash that could someday be used for a rainy day, or for strategic investments.

How I Spend Money with Whatever is Left

With what’s left of my allowance, I usually buy books. These are mainly documentary magazines, which I read during my leisure time. It is actually one of my hobbies. I have made it a personal tradition to always purchase a documentary magazine each time I get my regular allowance. I particularly enjoy news magazines and feature magazines. I am a lover of general knowledge. I love knowing about everything, how and why things are the way they are – whether about nature, politics, science, or geography. It is always a first on my list of hobbies.

The other bit of my regular allowance goes towards the purchase of snacks. I love yogurt and ice cream. The refrigerator at home always has a shelf specifically reserved for my yogurts.

The remainder of my allowance goes towards others. These include my family and friends. I try to buy them something nice as a way of thanking them for taking good care of me.

I also go out of the way to purchase some gifts for my siblings as well as my parents. I want to gift them with simple things, even if they were the ones who gave me my allowance. Doing this for them gives me so much satisfaction since I love making them happy. After all, what is life without happy family and friends?

Regular allowances taught me how to make wise spending decisions. I know how to handle and spend my cash, whatever amount it might be. Therefore, I am confident that when I start handling larger amounts of money in the future, I won’t be as overwhelmed. I will make it a point to remember the financial lessons I’ve learned as a child. I hope to also be able to teach others who to use their money wisely.

Short Essay About What You Would Spend Your Money On

Did you grow up being taught about the value of saving money? If you were like me, your mom and dad probably gave you a regular allowance. They also probably gave you free rein to use your money in whatever way.

Growing up, I deposited regular amounts into my savings account the moment my allowance was handed to me. I did not want to be tempted to splurge on all the food I was craving for while holding all of my money. Personally, apart from fast food, I enjoyed treating myself to books. In fact, I made it a regular tradition to purchase a book every time I got my allowance.

I remember being taught how to make a personal budget out of my allowance. Exactly how much money was given to me didn’t matter as much as the main principle they passed on: save money. They didn’t care if I used the rest of my allowance on junk food or other types of impulse buying. All that mattered to them was whether or not I set aside a portion to put in a savings account. And so I did.

How To Write An Essay About Money

There are so many ways to write a piece about finances. It depends on the lens you are viewing the topic from. Are you an adult looking back at your childhood and remembering important lessons learned? Are you a financial expert looking to give some advice on how to maximize your cash? Are you a student wanting to teach people how to set aside an amount in case of an emergency? Are you a parent who discovered creative hacks in your finances to make ends meet? Find your angle and work it.

How To Spend Money Wisely As A Teenager

When you are young and still living under your guardians’ roof, thinking about contingencies or other things you may be needing to buy before your next allowance comes may not come naturally to you. It is so important to learn how to handle your personal finances even at that age because that sets the direction of your spending in the future. When you start getting a monthly income, the weight of the responsibility is even greater as you start to live independently. Even as a teenager, learn to set financial goals and think of the long game. Even if you have to put money inside a piggy bank to avoid temptation, do so. Track your expenses and make adjustments according to your level of contentment. Learn the art of investing from an expert. Finally, don’t shop ’till you drop. It’s a trap.

How to Spend Money Wisely

Posted on October 28, 2021 in Money

There are many ways how to spend money wisely. You can be smart about how much you give away, and when you do so you can also make smart choices about what to buy, and where you go. When you do all these things, you not only save a lot of money, but you also have better experiences with your life.

1. know how much you have to spend, 2. spend your money on things that will benefit you in the long-term, 3. spend your money on necessities first, 4. spend money doing good deeds and for charity, 5. resist the urge to spend money on unnecessary goods & services, 6. prioritize spending money on things you truly value, conclusion on how to spend money wisely.

The first thing that needs to be understood is that we all need money to survive. It’s a part of our lives, whether we like it or not. But knowing how to spend your money and earnings is still a work in progress. Below we cover the top 6 ways how you can spend money wisely to show you the importance of careful money management.

How Can You Spend Your Earnings Wisely?

It is advisable to only spend money on the things you need and allocate a part for pleasure such as food and entertainment. With this method, you will be able to save more money over time. Furthermore, when budgeting your money avoid allocating too much to one thing that might end up not worth it. By learning how and when to spend money wisely, you will be able to save more in the long run.

First of all, when it comes to how to spend money wisely, knowing how much you have to spend is the most important detail here. There are many things that people could buy with 100$ or more, but then there are also things that only costs 5$. That’s just one detail that needs to be understood before you start spending money.

The next thing that you can do is to make sure that you buy things that are worth your money. You should only spend on the things that benefit you, or help you to earn more. Sometimes people end up buying stuff for several hundred dollars, but then never use these items again. These items would have been bought for much cheaper, but if the person spent 200$ on them, then that’s just a huge loss of money.

The next thing to think about is what you’re buying. Sometimes people spend their money on things that they think will bring them happiness in life. But instead, all it does is drag them down and make them feel worse than before. That’s why it is important to spend money wisely and be smart about what you buy, and where. Be sure to always cover your basic needs first , then focus on savings accounts, and then you can start budgeting for entertainment and things that you wanted to have.

You can also spend your money wisely on good deeds for others. Sometimes spending money on yourself becomes too easy. As a result, you start feeling miserable with life because you’re just motivated by your own personal interests all the time. If you only take the time to think about others, and what you can do for them, then you’ll see that doing good deeds is a lot more rewarding than the other things.

People should also make sure that they don’t spend money on unnecessary things. Sometimes people get caught up in the moment and end up buying stuff they don’t need. That’s why money management is key, and it is important to always be prepared before going shopping because you might not know when an opportunity to buy this or that comes along.

The last thing you can do is to know when and where to spend your money wisely. For example, you could go to the cinema with a friend, or take her out for dinner afterward. But if these things aren’t important in your life, then you should avoid them because they will eventually make you feel unhappy and dissatisfied with yourself. Try simpler and cheaper kinds of entertainment like online games or sports. If you’re into sports, you might want to try out your luck and prediction skills on online sports betting. Nowadays, it is easy to find good sites offering fair deals and useful tips. You can go to the internet and search for the best betting companies and just start from there. As long as you do it responsibly, it might even save you some money or even get some if you’re lucky.

Knowing how and when to spend your money is an important skill that everyone should learn. You may even wish to leverage an all-in-one money app like SmartCredit to help you stay on track. By understanding how to spend your money, you will free up more time and energy for other things in life. This way, not only will you save a lot of cash, but you will also be able to enjoy yourself because there are so many great opportunities out there.

It’s all about understanding your priorities and how much money you need to spend on the things that matter. By mastering this skill, you will be able to live a more enjoyable life because you know exactly what it is that makes you feel better. So why not take a step back and start rethinking how you can improve your budgeting skills and spend your money wisely?

2023 SmartCredit.com Review: Pros, Cons, Features, and More

Money | 8 min read | February 22, 2023

The Difference Between Federal Accepted and Approved Tax Returns

Money | 7 min read | January 31, 2023

Need expert financial advice?

Let TurboFinance connect you with the best consulting services and resources to help you take control of your finances and find a path to build wealth.

Free Essays

How To Spend Money Wisely

Sorry, but downloading text is forbidden on this website. if you need this or any other sample, we can send it to you via email. please, specify your valid email address.

By clicking "Submit", you agree to our terms of service and privacy policy . We'll occasionally send you account related and promo emails.

Thank you! How about make it original at only $13.90/page?

Let us edit it for you at only $13.90 to make it 100% original!

So,following the steps below will improve your overall pocketbook health. First, come up with a budget. Financial experts suggest you track your spending for a few months so that you start work on your budget knowing where your money is going. If you are bad about saving receipts for cash purchases, keep a notebook with you, to write down all cash purchases as you make them.Additionally, make a list of your monthly expenses, using your bills and the information you gather.

Review this list to determine where you can reduce expenses and by how much. Therefore, avoid impulse buying. Before making any purchase, ask yourself a few simple questions, and be honest with your answers. Only move on to the next question if you can answer yes to the current one. If you cannot get all the way through the questions, it is probably an impulse buy and you should pass it up. You should think about the things in your life that you tend to spend the most money on.

Most of these areas are outlined below, with suggestions as to how you can cut down on spending in them. Besides. shop around regularly for utilities and insurance. Many service providers count on customers sticking with the services simply because it is easier than shopping for another one regularly. If it has been more than a year since you purchased your cell or home phone service, cable or satellite package, internet service, or car, home, or health insurance, shop around and make sure you are still getting the best deal. Moreover, Research large purchases before buying.

Money doesn’t grow on trees. So, we must work hard to find money Managing your money wisely is one of the most important ways to gain a level of financial stability and independence.Regardless of your income level, there are intelligent and manageable ways to spend money, and there are many ways that can leave you behind the eight ball and unable to pay the bills. If you’ve never had lessons on money management or have simply forgotten them over time, here are a few very simple steps you can take to put you and your bank account on the right track to financial stability and comfort for you and your family. 1. Don’t Spend it All It seems pretty simple, but spending less than you earn is an essential first step to stabilizing your situation and having something left over at the end of the month.

The easiest way to track this is on a monthly basis. Chances are you already know how much money you earn in a month. Now get all your monthly bills you have to pay every month and add those up. After that, figure out how much money you spend on groceries, entertainment, and other day-to-day expenses throughout the month. Once you have it all added up, you’ll know if you’re saving money at the end of the month or ending up with a deficit. If you have a deficit at the end of the month, you are probably buying those extra items on a credit card with interest rates that will make you owe more money in the long run.

All of this will save you money in the long run. If there are other places in your entertainment budget that you can cut costs, do it. 3. Start Saving Early Once you’re able to put away some extra money at the end of the month, don’t spend it all at once on something. Instead, invest it in the future of your family and your own retirement.If you put your money into a high yield savings account now it will end up paying off by a lot in the long run.

How To Spend Your Money Wisely It is always important and necessary for you to understand your personal finances. Whether you like it or not, being able to learn more about your money makes you more confident in the decisions that you make in the future. When you understand these tips, your financial situation will improve. Build a budget based on your monthly income and costs. A budget is a tool to help you plan, prioritize, and manage your income and expenses.Review your budget often and update it when you are experiencing a change in income and expenses.

The key to building an effective budget is knowing exactly how much money your family earns every month. Everything you spend money on should be accounted for. Never spend more money than you have available. Take the time to record your expenses. Making a list of expenditures can help you to visualize where all of the money goes.

Don't overlook expenses that don't occur monthly but are paid quarterly or twice a year. Add surprise expenses to your list, such as emergency or repair costs.You should also include leisure and entertainment expenses on your list. Doing all of this will ensure that you have an accurate portrayal of your expenses.

Once you have established a detailed record of your household cash flow, you can create a feasible budget. Eliminate things from your budget that are not necessary. You can keep a lot of money in your pocket if you stop buying your coffee at a coffee shop or buying your lunch. Upgrades and improvements to your house can save money on your utility bills.

Consider getting new appliances, like efficient washing machines or dishwashers, that use less water.When it comes to delivering hot water, tank heaters are less efficient than on-demand or inline heaters. You should have the pipes in your home checked in order to find any leaks that may be costing you extra on your water bill. You may want to think about upgrading appliances with energy smart ones.

Appliances that have circuitry that regulates their energy use save a lot of money over time. You should also unplug unused electrical devices when they are not in use. In the long run, things with the indicator lights can use quite a bit of electricity.Another project that you can undertake is to increase insulation. You can do this by improving your walls, ceiling, and roof.

You will find that your home will be able to store more heat, which can save money. This might take a lot of time, but the money saved is worth it. Although some of these suggestions may bring with them significant investments, it is still certain that they will be of worth in the long run. The money you spent on the initial invest will quickly be returned to you in the form of lower bills.

Over time, you will have a lot more money and financial freedom.

Corporate Social Responsibility (CSR) is very important to the success of business…

Summer is coming soon. School will be out. I probably will ride…

Free time is a something everybody needs. Free time always people to…

How can people in need of care that live in public spaces…

Eassy Sunday. Sunday is by far and has always been my favorite…

Based on the results of the survey, people have become to spend…

The old Horatio Alger stories capture the American dream pretty well. Those…

Motivation could be defined as ‘’that which gives impetus to our behavior…

Discuss the measurement of the money supply in the U. S. measured?…

Sports franchises are no small deals. The cash flow factor can be…

The world is more and more developing. The desire to control the…

Throughout history, America and other global economies have consistently battled for equality…

Hi! We can edit and customize this paper for you. Just send your request for getting no plagiarism essay

HAVEN’T FOUND YOUR TOPIC?

Let us write it for you!

IMAGES

How To Spend Money Wisely Essay Example
How to Save Money?
Write an essay about how do you spend money ?
7 Tips to Spending Money Wisely
PPT
How to Spend Money Wisely Essay

VIDEO

How To Spend Your Money Wisely

COMMENTS

Free Essay: How To Spend Money Wisely
1. Don't Spend it All. It seems pretty simple, but spending less than you earn is an essential first step to stabilizing your situation and having something left over at the end of the month. The easiest way to track this is on a monthly basis. Chances are you already know how much money you earn in a month.
How to Spend Money Wisely (with Pictures)
Even shopping while hungry or listening to loud can be a bad idea if you don't stick to your shopping list. 4. Shop alone. Children, friends who love shopping, or even just a friend whose tastes you respect can influence you to spend extra money. Do not take advice from store employees.
Essay on Money Management
250 Words Essay on Money Management What is Money Management? Money management means taking care of your money. It's like knowing how to use your pocket money wisely. You plan how to spend it, save some, and make sure you have enough for things you need. Saving Money. Saving is putting money aside for later. Imagine you want a new toy or a book.
10 Simple Ways To Manage Your Money Better
Use the budget: Your budget is useless if you make it then let it collect dust in a folder tucked away in your bookshelf or file cabinet. Refer to it often throughout the month to help guide your spending decisions. Update it as you pay bills and spend on other monthly expenses. At any given time during the month, you should have an idea of how ...
How to Spend Money Wisely: 12 Hacks To Improve Your Habits
Many people love the idea of time freedom for this reason. 3. Invest in Your Future. One way to spend money wisely is by investing in your future. This might be done through a 401 (k) or Roth IRA, which lets you invest pre-tax dollars and then withdraw them tax-free once you retire.
Spending Money Wisely
One thing that is recommended when it comes to keeping track of needs and wants is to use the 50/30/20 rule. This means that 50% of your income should be devoted to paying for needs, 30% of your income can go to buying your wants, and the last 20% should be added to your savings. Plug the leaks in your spending.
Part 2
In your essay, you should write about: the things you spend your money on where you buy these things how you save money while shopping. Impulsive buying is a widespread inappropriate shopping behaviour. We must manage our hard-earned money wisely so we will not overspend. Therefore, all Malaysian must have good financial planning. I usually ...
How Students Can Manage Their Money: [Essay Example], 824 words
Get original essay. First and foremost, students can manage their money by creating a budget that includes everything. Students should list out the source of income, such as parents' allowance, part-time job, study loans or any grants. Then, they can map out the estimated expenses for a week or a month including expenses like food, travel ...
5 Smart Ways To Make Wise Spending Decisions As Financially Savvy
5 Ways To Spend Money Wisely As Financially Savvy Traveler. Maximize your travel budget like a pro with these five smart strategies for making wise spending decisions. 1. Know the Rules of Engagement. Familiarize yourself with the rules and policies of airlines, hotels, and other travel providers.
10 Tips to Spend Money Wisely
Like tracking your spending, going to a cash-only system, if only for a week, will bring a heightened consciousness level to your spending. 9. Implement a "sleep on it" rule. Decide today that for any purchase over X amount, you will "sleep on it.". It could be one night, a week, thirty days, whatever.
4 Ways to Manage Your Money Wisely
3. Break your expenses down into fixed, essential, and non-essential. This is the best way to see where you can save money and start spending wisely. Fixed Expenses: These are things that do not change month to month but must be paid, including rent, car/loan payments, etc.
How to Start Saving Money: 8 Money Saving Tips
Record your expenses. The first step to start saving money is figuring out how much you spend. Keep track of all your expenses—that means every coffee, household item and cash tip as well as regular monthly bills. Record your expenses however is easiest for you—a pencil and paper, a simple spreadsheet or a free online spending tracker or app.
How to Spend Money Wisely: 7 Habits to Watch
Yes, it's ok to shop and buy nice things, but you want to make sure you can afford what you are buying, and it's not at the expense of your financial goals or obligations. 6. Shopping when you're upset or bored. A common bad money habit to watch is shopping when you're bored or upset.
How to Smartly Spend Your Money as a Teen
The great thing about this one is that you can include anything in your budget. As long as you plan ahead of time. 50/30/20 Rule: This strategy breaks your money up by percentages. The rule is that 50% of your income should cover your needs, 30% is for your wants, and 20% is for savings. Stick to the percentages and you'll manage your money ...
5 Easy Ways to Take Control of Your Personal Finances
Create an emergency fund. Putting aside $50 a month can really add up. You should aim to have at least $1,000 in your fund until you are out of debt. Be honest with yourself. The financial gap ...
A Guide On How To Spend Money Wisely
Take stock of your spending habits. The first step toward making positive financial change is to sit down and take stock of your spending habits. If you have a feeling that you're overspending each month, there is probably a very good chance that you are. Some signs that you're overspending can be neglecting your bills and opting to spend ...
8 Tips for Spending Time Wisely
Poor or rich, we all have 24 hours a day, 7 days a week. Thus, each of us faces the choice of how to spend our time. In a world of scarcity, choosing one thing means not being able to do something ...
How To Spend Money Wisely Essay Example
3. Start Saving Early Once you're able to put away some extra money at the end of the month, don't spend it all at once on something. Instead, invest it in the future of your family and your own retirement. If you put your money into a high yield savings account now it will end up paying off by a lot in the long run.
How I Spent My Pocket Money, Essay Sample
It's really rooted in the experience one gets in choosing how to spend it. First, there's the anticipation of receiving an allowance. Next, there's the excitement of thinking about all the things you've been wanting to get for yourself. Third, there's the delight of actually receiving the allowance.
How to Spend Your Money Wisely
This is a topic that gathers a lot of interest because we all use money and we all need it. Money is a necessity no matter what anyone else says. One of the hardest things when it comes to money is deciding how to spend it wisely. I am sure that you are just like the majority of us who can sometimes make buying decisions that we regret later on.
How to Spend Money Wisely
4. Spend Money Doing Good Deeds and for Charity. 5. Resist the Urge to Spend Money on Unnecessary Goods & Services. 6. Prioritize Spending Money on Things You Truly Value. Conclusion on How to Spend Money Wisely. The first thing that needs to be understood is that we all need money to survive.
How To Spend Money Wisely Free Essay Example from StudyTiger
Free Essays; How To Spend Money Wisely; How To Spend Money Wisely. A. Pages:5 Words:1370. WE WILL WRITE A CUSTOM ESSAY SAMPLE ON FOR ONLY $13.90/PAGE. Order Now. ... How To Spend Your Money Wisely It is always important and necessary for you to understand your personal finances. Whether you like it or not, being able to learn more about your ...
Advantages Of Spending Money Essay
Advantages Of Spending Money Essay. Recommended: Home cooked meal vs. eating in restaurants. Spending money is easy, but saving money can be hard to do. You don't need to buy everything you want, but that does not mean you can't spoil yourself occasionally, because sometimes we feel the need to splurge.

Essay on Money Management

100 Words Essay on Money Management

Saving Money

Spending Wisely

Making a Budget

250 Words Essay on Money Management

Why It Matters

500 Words Essay on Money Management

Creating a Budget

Smart Spending

Understanding Needs vs. Wants

Dealing with Emergencies

Making Money Grow

Sharing and Giving

Leave a Reply Cancel reply

10 Simple Ways To Manage Your Money Better

How To Manage Your Money Better

Frequently Asked Questions (FAQs)

How do you improve money management?

How to Spend Money Wisely: 12 Hacks To Improve Your Habits

How to Spend Money Wisely

1. Pay Yourself First

2. Take Care of You

3. Invest in Your Future

4. Choose Experiences

5. Set Goals

7. Evaluate Your Spending

8. Likeminded People

9. Spend on Quality Over Quantity

10. Eat at Home

11. Use Tax-Advantaged Accounts

12. Spend on things that add happiness to life

How to Spend Money to Make Money

How to Spend Less Money

How Much Money Should you Spend?

Ready to Start Spending Money Wisely?

Did the post resonate with you?

Leave a Reply Cancel reply

Spending Money Wisely

How to Manage Your Money as a Student

Cite this Essay

Related Essays

Still can’t find what you need?

Related Essays on Money

Related Topics

Get Your Personalized Essay in 3 Hours or Less!

10 Tips to Spend Money Wisely

1. Make a list of what you value.

2. Make a list of things you really enjoy.

3. Make a list of places, things, or people that cause you to make poor spending choices.

4. Review your regular spending for things to eliminate.

5. Review your regular spending to identify things to reduce.

6. Create a budget.

7. Start writing down each purchase you make.

8. Switch to only cash.

9. Implement a “sleep on it” rule.

10. Put future spending on a calendar.

Similar Posts

41 Fun, Cheap and Free Things to Do in the Summer

024: Keeping the Personal in Personal Finance with Jen Hemphill

6 Ways to Give Memorable Gifts (Without Going Into Debt)

My Mystery Shopping Experience: Such a Thing as Free Lunch?

Budgeting – An Easier, Smarter Way

Our Destin, Florida Beach Vacation

13 Comments

How to Manage Your Money Wisely

Budgeting Your Money

Spending Smartly

Saving for the Future

How Can I Be Smarter With My Money?

Expert Q&A

You Might Also Like

About This Article

Reader Success Stories

Did this article help you?

Featured Articles

Trending Articles

Watch Articles

What are your financial priorities?

Welcome back. Here's where you left off.