How to start to get into a habit of saving money from young in Singapore

Starting a habit of saving money from a young age in Singapore can set the foundation for financial stability and growth. Here are some practical steps to get into the habit of saving:

1. Set Clear Financial Goals

• Define what you are saving for, whether it's a gadget, education, a trip, or an emergency fund.
• Set both short-term and long-term goals to stay motivated.

2. Create a Budget

• Track your income (allowance, part-time job earnings) and expenses.
• Use apps like Seedly, Toshl Finance, or a simple spreadsheet to manage your budget.

3. Open a Savings Account

• Open a savings account with a local bank like DBS, OCBC, or UOB.
• Consider accounts with higher interest rates or specific savings plans for youths, such as POSB Smart Buddy or OCBC Mighty Savers.

4. Automate Your Savings

• Set up automatic transfers from your spending account to your savings account on a regular basis.
• Even small amounts, like $10 a week, can add up over time.

5. Track Your Spending

• Keep an eye on where your money goes. Identify and cut down on unnecessary expenses.
• Avoid impulsive purchases by implementing a 24-hour rule: wait a day before making non-essential purchases.

6. Prioritize Needs Over Wants

• Differentiate between needs (essential expenses like food and transport) and wants (luxuries like dining out or new clothes).
• Prioritize spending on needs and limit spending on wants.

7. Use Cash or Debit Cards

• Using cash can help you be more aware of your spending.
• Debit cards can also help control spending better than credit cards, which can lead to debt if not managed properly.

8. Save Any Extra Money

• Save any extra money received from allowances, part-time jobs, or gifts instead of spending it all.
• Allocate a percentage of any extra income directly to your savings.

9. Learn About Financial Literacy

• Educate yourself about money management through books, online courses, and workshops.
• Websites like MoneySense provide useful resources for financial education in Singapore.

10. Set a Savings Challenge

• Participate in savings challenges, such as the 52-week savings challenge, where you gradually increase the amount you save each week.
• Make it a fun competition with friends or family members.

11. Reward Yourself

• Occasionally reward yourself for reaching savings milestones to stay motivated.
• Choose affordable rewards that won't derail your savings goals.

12. Seek Guidance

• Talk to parents or guardians about their saving habits and seek advice.
• Consider consulting with a financial advisor for personalized tips and strategies.

By integrating these practices into your daily life, you can develop a strong habit of saving money from a young age and build a solid financial foundation for the future

I've been teaching my daughters to start saving at a young age. Although they do not quite comprehend the concept of money. I try to cultivate a habit for them to follow. For the meal allowance that they get every day. Think about how to have delay gratification whereby they can get an icecream at end of the week by saving the 20cents that they did not incur from buying drinks. Go for the alternatives like water instead of drinks.