One of our NGPF team members recently discovered this New York Times article about different saving habits that people have developed over the years. NGPF is a big proponent of matters regarding personal finance, and so we thought we’d share this article, which is full of very helpful saving advice, with you. Financial education starts in the home, and it begins with developing good spending and savings habits.

One of the best—and in my opinion, most mindful—saving habits from the article came from Margaret Ryan, who explained, “I save $5 bills. Never spend them. Just put them away in my drawer. When I have 20, I take them to the bank and exchange them for a $100 bill. By years’ end I usually have about a grand, which I use for Christmas tips and gifts — and not running up my credit cards” (New York Times).

Managing your spending habits can be difficult, especially if you’ve got multiple bills to pay. As a good rule of thumb, prioritize your bills in order of importance. Credit card bills should be one of the first things you address, as a bad credit score can have serious consequences on your financial well-being. In terms of buying things on a whim, I’d follow rapper Jay-Z’s advice: “If you can’t afford to buy it twice, you can’t afford it.” Additionally, you can check out this SNL skit on bad credit card usage to see how not to spend.

Personally, my spending and saving habits are as follows: in addition to dividing up my earnings bi-weekly into four categories—student loans/other bills, emergency fund, savings, and fun money—I withdraw $40 each week to have cash on my person. I try to keep cash on my person at all times, as this allows me to physically see what I’m spending. About two times a year, I like to split the money I’ve accumulated into what I’ll give as cash donations and what I’ll give as anonymous check donations.

Saving and spending habits are at the core of personal finance, and if you learn to manage those two down pat, then you’re golden. The earlier you develop good financial habits, the better you’ll become at sticking to them in the long run. Luckily, NGPF offers the advice and tools to get you started or up-to-speed in regards to handling your financial future!

Questions:

• Do you practice savings habits right now? If so, what are they and how did you first implement them into your life?
• How do you divide up your income? Do you feel as if you could make some decisions to be more financially savvy?
• If you could give advice to your younger self on saving money, what would you say?

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If you liked this article, be sure to check out our lesson on budgeting basics. In addition, we offer activities, projects, case studies, and blog posts all about getting your budget on track!

Picture credit: http://www.nbc.com/saturday-night-live/video/dont-buy-stuff/n12020 

About the Author

Danielle Bautista

Danielle is a native of Southern California and a recent graduate from the University of Maine, where she braved the frigid winters—a feat in and of itself—and earned her Bachelor's degree in International Affairs. She has a passion for working with non-profit organizations and serving populations in underprivileged communities. When Danielle isn't writing NGPF blog posts, spearheading various outreach projects, or managing contests and flash surveys, you can find her doing some sort of outdoor activity, learning a new hobby, or cracking what she thinks are witty puns!