Up to Age 12

Earning Money

Do you get an allowance for doing chores around the house? Are you collecting cash from family for your birthday and holidays? Those are pretty easy ways to earn money and get more financial freedom. And if you're ready to take it another step, consider other ways to make money:

• Ask neighbors if you can do yard work for them (ask your family, too) 
• Babysit for people you know
• Tutor younger kids with their homework 
• Take on more responsibilities around your house 
• Walk neighbors' dogs and offer to pet-sit for them

Saving Money

As you take in that extra money, make sure you're not spending it all! Why? Consider this:

1. Emergencies
You never know when something will pop up and you need cash. Maybe your bike or skateboard is stolen because you didn't bring it into the garage like you were told. Your parents refuse to buy a new one because it was your responsibility. If you don't save money to buy one yourself, you're out of luck while your friends are having fun. 

2. Current Expenses
You know how it goes. You see some new clothes you want. Or you see a trailer for a new movie you want to check out. When you have savings, you can make these purchases without asking for money.
 
3. Future Purchases
Sure, it's several years from now, but one day you'll want to trade in that bike for a car. And those are expensive. If you keep putting away some money steadily over the years, you'll build up enough savings to make those bigger purchases. The same goes for college expenses or anything larger expense you have in mind. 

Budgeting Money

This isn't complicated, but it takes work. It'll also pay off in the long run when your finances become more complex. Budgeting money is all about creating a plan for how you will spend and save your money. Here's how to do it: 

Step 1: Promise yourself you'll stick to your plan. 

Step 2: Figure out how much money you earn each month. 

Step 3: Decide how much you want to save and why. Divide the money into several categories:

• Everyday expenses
• Savings for large purchases
• Savings for the future
• Savings for investments

Step 4: Set spending limits. 

Step 5: Track your spending and savings activity.
 
As you see how you're using your money every month, you'll notice patterns. Maybe you spend too much money in a certain area. When you notice that, you can cut back in those areas and put more of your money into savings.