The best time to start saving money is now, the earlier the better. One should start saving once they start earning money, this is a great recommendation that many still fail to follow.
For as long as you are earning an income, it is a great idea to save. Be it when you get paid for doing chores when you’re young or when you’ve just started your first job after studying.
At what age do you start saving?
Saving money is a wise financial practice at any age – you can even start a savings practice for children as young as one day old. From the time that your child is born, you need to start saving for their future. When they are grown up and can understand basic principles, you need to start teaching them how to continue saving for themselves.
What should motivate you to save?
Explore and evaluate your motivations. Honest answers may give you the push you need to get started on your savings goal right away. However, saving is not always something you need the motivation to do. It is a responsibility one must take on at an early age to avoid any financial stress in the future.
What are your goals?
The first decision to make is on a set of goals. This becomes more serious as one grows up. A child, however, can also have goals. Your 5 years old child may want a princess’ dress. Introduce goals to her and how she can save up for her goals. As for when you are older, determine whether you are saving up for a long or short-term goal. Now would be a good time to start saving for a short-term goal.
Should I save for an emergency fund?
Consider saving for an emergency fund that you might need in the future. If you want to save up for a long-term goal, you should start after you finish with school. It would be best also to save for a long-term goal once you have a solid income.