Regardless of the amount, being entrusted with money is a big responsibility. For students like you, this usually comes in the form of your allowance. While it can be tempting to use up all the money you receive, putting some aside for your savings can be a challenging yet very rewarding endeavor.
Here are some tips from CIMB Bank Philippines, the best bank in the Philippines according to Forbes’ 2023 World’s Best Bank Ranking, on how you can effectively grow your savings this school year:
1. Set a goal and corresponding checkpoints
Before you even begin saving, the first thing you should do is understand why you’re doing so. Are you saving up for a new gadget? New clothes for next semester? Or do you want to have your own emergency fund? Regardless of the reason, identify at least one goal and set an amount you want to achieve and by when. Set checkpoints as well, as this will give you a more concrete timeframe and a sense of fulfilment as you slowly work toward your goal.
2. Pay yourself first
Similar to people who receive monthly salaries, an effective way to ensure that you have savings is to immediately put aside a certain amount as soon as you receive your allowance. From there, you can work around your remaining budget while keeping your savings intact. This exercise can also help instill better money-handling discipline in the long run.
3. Seek alternatives before spending
When there is a need to purchase something, take some time to see if there are alternatives that are better value for money. With the help of technology, learning about acceptable options or dupes is just one Google search away. Same goes for activities with friends – instead of going to the movies, how about a more affordable yet equally fun movie night at home instead? After all, good things need not be expensive.
4. Pool resources with your friends
Whether it’s for school-related or personal items, buying in bulk can help you save money that can go towards your savings instead. If there are materials you need to buy for school requirements, chances are, your classmates would need them too. Look around for stores or suppliers that can give discounts for bulk orders and arrange a group buy instead. Same goes for recurring items you and your friends need for the next couple of years, such as school supplies. This way, everyone can benefit from the additional savings and add more to their financial goals.
5. Don’t be afraid to ask adults for help
Trying to save money can get overwhelming, so keep in mind that there’s no harm in asking for help. Speak to your parent, guardian, or any adult you trust when you need to make an important financial decision, when you’re feeling a bit lost in the all the numbers, or simply when you want to run an idea by them for their second opinion. They can offer practical tips or knowledge gained from years of experience handling money, which you may use to guide you on your journey.
Remember that saving money is a valuable habit that you can use for your whole life. Having the discipline to save money takes work but is rewarding in the long run.
You can take this opportunity to formally open your own savings account. To help you secure and grow your savings with ease, a dedicated bank account, like CIMB Bank PH’s Fast Plus or UpSave savings accounts, can help you manage your money with better interest rates than most banks. Opening an account only takes around 10 minutes via CIMB’s dedicated app, and with no minimum deposit, you can easily start having full control of your savings.
If you’re an existing GCash user, you can also opt to open a GSave account which you can link to the CIMB mobile app for easier management and to access other CIMB products, such as the CIMB Virtual Debit Card. This free virtual card can be linked to any of your CIMB savings accounts and be used to buy your student needs online safely and securely.
Get started on your savings journey today with CIMB Bank PH.
Visit cimbbank.com.ph for more information on CIMB’s products and promotions.