Back to School Basics: Saving

Oscar Tyers: Hi, I’m Oscar Tyers. I’m here with Ian Tam. Today, we’re talking about saving money.

Hi, Ian Tam.

Ian Tam: Hi, Oscar. How are you?

Tyers: Good.

Tam: Do you have a question, Oscar?

Tyers: Why should I save money?

Tam: That is a great question. So, most people save money so that they can buy something that they like later on. So, for example, you might want to buy a new soccer ball or maybe a new bike, since you like riding bikes, and you need money to do that. Some people also want to save money to help others. So, maybe your little brother wants to have a new toy or something. So, if you have some money, you can help him buy that toy if you wanted to. And then also it’s a good way to learn about money. When you save money, you can think about what you want to spend it on in the future. And finally, some people like to save money for an emergency fund. So, let’s say, something happens, you need some extra money, it’s always good to have a little bit more in your back pocket.

Tyers: How do I save money?

Tam: Yeah, that’s a great question. I think everyone needs a little help. The first thing you want to do is set a goal. So, you need to have a reason that you’re saving money. So, maybe you’re saving up for a bike. That’s a great goal. The second thing you want to do is have a piggy bank, so somewhere that you can keep your money safe, and it will continue to grow as you put more money into that piggy bank. The third thing you want to do is make sure you keep track. So, it’s a fun thing to do because as your money grows, you can count it and see it become more money, which is always fun. And the last thing you want to do is ask for help. So, maybe your mom and your dad can help you save money and also help you keep track of it.

Tyers: What can savings be used for?

Tam: Great question. So, savings can be used for all sorts of stuff—toys, games, soccer balls, bikes, all the stuff that you really love. It can also be used for learning and adventure. So, maybe you want to go on a special trip somewhere, maybe look for a cool bike path or something like that. You can use money for that. You can also use money for helping others. So, just like I was saying before, you can maybe help your brother do something that he wants to do. You also save for the future. So, maybe in the future you want to make a big trip, or maybe you want to get a bigger bike, saving money today helps you do those things in the future.

Tyers: Thank you, Ian Tam. For Morningstar, I’m Oscar Tyers.