Our blog serves as a community of voices and opinions on financial literacy. And as promised, we will feature an all-star cast of bloggers to share their opinions, insights, and wealth of knowledge. Without further ado, I would like to introduce Mr. Kolonji Murray, President of the financial advisory firm Murray Wealth Group in New York City.
Being young and spending money seem to go hand in hand with on another like boyfriend and girlfriend. Between clothes, video games, hanging with friends and lunch money, there’s always a need for money. And add to the mix, generous adults (reluctantly sometimes) who are there to hand it out. So for many young people life’s great. Even if they don’t get all the money they want. It still beats not getting anything.
But spending money doesn’t have to be the only thing that young people do with money though. Unfortunately, over the years that I’ve been a financial adviser I’ve seen that be the single focus of young people when it comes to money.
Young People Can Save Money (And Not Touch It)
They have other options. For instance, instead of simply spending every dollar that goes into their hand and pocket they can save some of it. Save it and not touch it either. Starting out, that amount can be a few dollars a week but they should start with something.
Then what they can do is, get a shoe box, store plastic bag or a toy box to put the money in. Some stores even sell piggy banks to put money in. Whatever they decide though they want to keep it to themselves and not touch whatever they put into it. No using it for food, Call of Duty (not the old ones either) or letting someone borrow money or new sneakers or clothes or anything. Just saving.
Young People Need to Open a Bank Savings Account
Next, as they save more and more and the places that they save fill up with money they can open up a savings account with a local bank. To do this though, they need a parent or a guardian to help out. That being the case, they should tell the adult that they want to open up a savings account to put money in at a local bank.
To do that both the young person and the parent or guardian need to go to the bank together and sit with a bank employee to open the account. The bank employee will gladly do it if the adult has the correct identification.
Save More Money
Once that’s done the young person is in business. Not quite $100 million like Weezy but it’s a start. All they have to do now is decide where to put the money and not touch it. The shoe box or the bank. The cool part about the bank also is that every month they send a letter or what’s a called a statement to the young person’s home to let them know how much there is in total and how much was put in for the month.
So if you’re a young person who gets money in your pocket. Don’t look to just blow it. Put some of it aside in a savings account. Your future self will thank you for doing it.
About the Author: Kolonji Murray is President of the financial advisory firm Murray Wealth Group in New York. Prior to starting the firm in 2009, he worked as a banker and financial advisor for a number of leading Wall Street firms. He holds a degree in Accounting from Hampton University and is active in a number of civic and industry organizations. Along with being a tax preparer Mr. Murray is Series 7 and 66 licensed in NY, CT and GA. He is also life, accident and health, variable life/variable annuities insurance licensed in those states.
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