While investing your money might seem like a whole new world that is scary and complicated, the idea behind it is actually quite simple. When you invest money in a company, you are putting in money, hoping that the company will do well, and if it does do well, the money you put in will grow! Ask your parents to buy you a few shares of stock in a company you really like, like Apple or Nike. Learn to keep track of your investment by checking on your portfolio frequently!

Saving money is an incredibly important skill to get in the habit of doing. Even though it might seem like a concept for grown-ups, anyone can do it! Have your parents help you set up a savings account so you can deposit your money into your own account and earn interest over time. However, while saving money is a must, remember that it’s okay to also spend some money. After you put aside your savings, treat yourself to something you’ve wanted for awhile with your leftover money. A little bit of spending will be a reminder of how nice it feels to have money when you need it, and can actually keep you motivated to continue saving.

It’s a great feeling to open up an envelope and find a few crisp bills, but instead of spending it all on the new videogame that was just released, make sure you set aside half of the money that you receive. I know it seems like a lot, but it’s really important to start saving as early as possible. Saving half of your gift money lets you still spend a good amount of it, but also guarantees that you’ll have access to money at a time when you really need it.

If you find that you generally end up spending all of your allowance money, there’s a great trick that can get you in the swing of saving your money. Start reminding yourself to save 25% of your allowance. For example, if you get $4, try to set aside $1. You’ll find that after awhile, you’ll have a ton of money saved up! If you have a savings account, you can keep your saved money in the account and earn interest.

It’s super exciting to be able to start saving your own money, whether it’s in an envelope stashed away in your room or in your trusty piggy bank, but it’s really important to open up your own savings account. With your parent’s help, you can set up a savings account in the bank, deposit you money, and actually earn interest on your savings! Interest means that by keeping your money in the bank, you will actually be earning a small percentage of your original deposit every day! Once you open up an account, you’ll be sent monthly updates so you can keep track of your balance and interest. This is a great way to understand your own finances.