What do you do with the pocket money you're given? How do you plan to use the money you receive for your birthday or a special occasion?
Have you also perhaps thought about how you could most effectively use the pocket money given by your family?
Here are some ideas on how you can manage your own money:
- Think carefully about your purchases before deciding to buy anything
Upon receiving a fixed sum for a day, week, or month, one might feel an inner joy from getting money and the opportunity to spend it for personal use.
Nevertheless, we recommend that you consider a few questions before making a purchase: 1) Is this purchase NECESSARY? 2) How long will this money last me? 3) What ELSE could I DO with this money (instead of making this purchase)?
Once you have found answers to the questions, you might understand more clearly what you want and can spend your money on, and how much.
2. Set a goal/goals for yourself – save money for a specific purpose
It can be difficult to simply put some of your money aside. That's when setting goals comes in handy. Ask yourself, what do I want to save my money for?
Do you dream of buying new headphones, a phone, or even a skateboard with your own money?
Goals don't have to be very big – perhaps you want to treat yourself to new brushes, a new notebook, or a board game instead?
Whether the goal is small, large, or medium – setting a goal is already half the battle and brings you one step closer to achieving it. Write down your goal or goals in a visible place, and then all that remains is to review your money management, and you can start saving money towards your goal!
3. Save a portion of the money you receive
In the future, or even now, if you are employed under a contract of employment, various taxes (unemployment insurance, income tax, pension contributions) will be deducted from your salary. What if you set aside a certain percentage of your pocket money in the same way that the state will do with your salary in the future? What could you learn from this and how much money would you save per day, week or month?
You can also create another challenge – how much money should I put aside to save x (insert amount here) by x (insert your date here).
This money can be your savings buffer, i.e., money saved for unexpected events, or another option – to be a savings fund that you don't touch for a self-determined period. You might be surprised at what a saver you can become!
4. Ask your family about Digikassa and savings accounts
Do you have a bank card that you use for pocket money or other funds? Various banks offer the option to save your money within the bank. A "Digikassa" (Digital piggy bank) is a way to save money by sending the cents missing from a full euro to your Digikassa or a savings deposit created for you.
Example: if you buy a pack of sweets from the store, for example, for 1.59 (Drako sour candies), the missing cents from 2 euros (in this case, 0.41 cents) will be transferred to your Digikassa or savings account.
A savings account is a place in the bank where you can put aside your accumulated money or start saving money.
When using a digital wallet or savings account, all you have to do is watch your money grow. These services are also FREE, and you can access your savings at any time.
Summary of ideas on how to manage your money:
- Think carefully before you buy anything.
- Set a goal/goals for yourself – save money for a specific purpose
- Save some of the money received
- Ask your family about Digikassa and savings accounts
Every Wednesday, Anne Youth Center hosts an entrepreneurship club that addresses various important topics related to careers and money – from pocket money to investing.
Come and take part in the club's activities!
Sources used:
https://pood.kalev.eu/tootekategooria/kommid/
Digital Cash Register SEB bank
