Delaney R. – Lakewood High School

Nuvision Essay Challenge

111 can’t go I don’t have any money left”, “I just spent all my money on food”, 111 was saving that money but I guess I can go out ith you guys on Friday”. These are all excuses that not only myself, but many young people have used when it comes to either saving their money, or attempting to save it and failing. However, there are many ways that young adults can become better at saving, and remain debt-free. They can start by saving portions of their paychecks into a savings account, paying off credit-card and other bills on time, and prioritizing their purchases and where their money goes.

Saving a portion of your paycheck every month is a simple way to start a savings account. Many people have started their life savings account using this method, and have been successful. Good reasons for doing this are to have a backup just in case at all times, and to accumulate money for later on in life when you may want to splurge. This way, you’ll now you will have something to fall back on. However, many say that a savings account isn’t worth it because “the interest rates aren’t that great anyways”, this is mostly true, however, by setting up a bank account you are storing your money in a safe place that’s federally insured to always be yours and available to you by the Federal Deposit Insurance Corporation (FDIC}.

Staying debt-free is a great goal to have, especially as a young person. There are so many costs in life, and college is just the beginning of it. Houses, cars, children, and utilities are just some of the many expenses we all have to look forward to in the future. As scary a word as debt is, it can be avoided with financial planning and focus. Using a credit card is a good idea when you don’t have the cash on you or in your account to be able to use your debit card. But, credit cards are one of the top reasons for debt in America, with the total amount being $905 billion. But hold on, isn’t a credit card a good thing to be able to build credit to buy cars, houses, etc.? Yes, this is true, however buying everything on a credit card and thinking because you have one you can afford anything is what gets naive people into trouble. Even when you have a credit card, you should be meticulous about keeping track of what you buy using it, how often you’re using it, and paying off the bill as soon as you can. A good thought process to use before pulling the trigger on a new purchase is “if I had this amount in cash, would I still be buying it, or am I over my head?”

Having a ranking of priority on what you actually need to purchase and what you want to purchase is essential to saving money. This doesn’t always mean cutting out every single purchase you don’t absolutely need, but minimizing then would certainly not hurt you. For example, eating in instead of going out in a simple way to save a few bucks, and when you do this the money you would’ve used to go out can be put into your savings account. This will also help to cut down on credit card purchases, helping to avoid debt. Having a list before you go to the store, knowing exactly what you’re looking for at the mall, and cutting back on the little splurges are all small things that can have a large impact in the end.
Ultimately, young people will do what they want to do with their money, but for those who want to save, knowing where to start and how to stay consistent is important. Although there are countless ways to save money and be better prepared for unforeseen circumstances and the future, you can get a start through a savings account for portions of your paycheck, paying off bills on time, and prioritizing your purchases.