Interactive Learning Experience: Save First or Save What’s Left
Two people earn the same amount, and face the same temptations all year. But one moves money to savings on payday, while the other saves whatever is left after spending.
In this app, play that second person and see how far apart they finish.
Save First or Save What's Left
Two people, the same pay, the same bills, the same twelve temptations. One moves money to savings the moment they are paid. The other saves whatever is still there at the end of the month. You are the second one.
Both households
The temptations and their prices are invented, and both households face exactly the same list in the same order. The automatic side buys whatever its remaining cash covers, using the same rule every month, so it is not being clever. No interest is added to either balance, because twelve months of interest would blur the thing being measured. Decline everything and you will match the automatic side exactly, which is the honest version of this comparison.
Quiz: Saving Smart
The earlier you build saving habits, the more they pay off. Test your knowledge of compound interest and smart saving.
Introduction to Pay Yourself First for Kids and Teens
This video explains the concept of ‘pay yourself first’ in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about paying yourself first, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Kindergarten
- Elementary School
- Middle School
- High School
The topics covered are:
- How can you save money when you can barely make ends meet
- How to solve that problem and actually start saving
- How to implement the ‘Pay Yourself First’ strategy
Using this simple, 10 minute strategy, you will be able to save money very quickly and easily, and will always be sure that you are saving enough without worrying about it.
Intrigued? Let’s begin.
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How can I save money when I can barely make ends meet?
You’re certainly not alone. This is a very common problem.
When most people receive a paycheck, they spend on needs like rent and groceries, and then on nice-to-haves like entertainment and eating out. If there is any money left, they are tempted to spend it on wants – like an expensive pair of shoes they have been eyeing.
Only after all that, do they think of saving, if at all!
So by the time they remember to save, they have already spent most of their paycheck, if not all of it!
To save money quickly and easily, this vicious cycle needs to be broken.
How can I solve that problem and actually start saving?
Instead of spending first, and then saving what’s left over like most people, you should save first, and then spend what’s left over. This is called ‘pay yourself first’.
Pay yourself first means that you don’t ever even get a chance to spend the money you want to save: When you pay yourself first, money is saved immediately after you receive it, and trust me, you won’t even miss the money you set aside.
Even if you set aside just 10% of your paycheck, it will slowly add up to something substantial. Think of it as money that is not yours to spend no matter how tempting it is – treat it like a payroll deduction.
Once you park it and forget it, you will also have the freedom to spend what’s leftover without feeling guilty or worrying about not having anything left to save!
How can I implement the strategy of ‘pay yourself first’?
First, decide how much you want to pay yourself. How much should you pay yourself first? You can start with 5% or 10% of your paycheck, and when you feel comfortable, increase the amount.
And although you can save money manually, it is way better to do it automatically. This way you can avoid any last minute temptations, and the money gets saved before you can lay your hands on it.
You just need to set up automatic transfers between your checking account where you receive your paycheck, and your savings account. This takes less than 15 minutes, and needs to be done only once.
After that, money will automatically get saved as soon as you get your paycheck – without you even having to think about it. And that’s the best way to implement the pay yourself first method!
To learn more about checking and savings accounts and their differences, check out Comparison: Checking Account vs Savings Account
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast
Fun, informative and concise episodes by a 16-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Here’s a simple, 10 minute strategy that will enable you to save money very quickly and easily – you will always be sure that you are saving enough without worrying about it. Show notes and transcript at: Pay Yourself First: The Fastest and Easiest Way to Save Money
