7 ways young people can reach their financial goals

Save your money before you spend it

Put aside a portion of money received before you spend it, whether it’s your allowance, income from your job or a gift. This will prevent you from spending all of your money including the money meant for your savings.

Open an interest-bearing savings or cheque account

Opening an interest-bearing savings or cheque account will keep young motivated to save. This will give young people an out-of-sight place to put your savings and give them the opportunity to learn about the effect of interest.

Speak to your parents about matching your savings

Young people who are under 18 or still studying can ask their parents to match your savings or at least half of it if they belong to a middle-class or affluent household.

Have a set of goals

Setting goals will make the process of saving much easier because you will know what you are saving your money towards. It will also prevent you from being tempted to spend money unnecessarily.

Track your spending

The smart way to save money is to keep track of it. Young people can track their spending using a spreadsheet or an app. It will give you an idea of where your money is going and what needs to be cut back on.

Give yourself an allowance

If you have a side hustle and part-time job, pay all of the earnings straight into the account meant for saving. Doing this will stop you from being tempted to spend your money but instead cultivate financial discipline.

Instill delayed gratification in yourself

Delayed gratification is a person’s ability to resist an instant ‌reward so that they can get a more valuable reward in the future.

You can teach yourself delayed gratification by making a list of your financial priorities over the next one to three years. Then create a plan to save enough money to take care of each of them.