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Becoming Money Savvy

Have you ever wondered how to be better with the money you get from chores, birthday, special occasions and more? This is a way to start saving and making money with the money you have.


When you get money, you should separate it into four parts (SSDI):

1. Save 25%

2. Spend 25%

3. Donate 25%

4. Invest 25%


For every dollar you earn, $0.25 goes into each of those four parts (save, spend, donate, invest). For example, you have $28.00. 28 divided by 4 is 7. So...

· $7.00 goes to your savings

· $7.00 goes in your wallet to spend

· $7.00 is donated to a charity of your choice

· $7.00 goes into your investments


Having a savings account is a great way to create a plan to buy something you're dreaming about purchasing. It is also important to have a savings account for emergencies either for now or when you get old enough to buy a car or rent your own place. The emergency funds should be enough to cover all your living expenses for 3-6 months. This "just-in-case" approach will help keep those financial stresses down that often plague us when we start paying for everything on our own.


Spending wisely is an important part of becoming money savvy. If you spend beyond what you set aside, then you end up either borrowing from one of the four SSDIs or borrowing from someone else. It will cost you either way because what you earmarked has a special plan to make us more money and borrowing money gets expensive with interest rates. Make a budget for the things you want. It will take some time to get that item, game or experience but it will be so much better for your future. Budgets have three rules:


1. Be patient.

2. Do not spend beyond your means.

3. Make and stick to a plan.


When we donate money, we look for those things we feel most passionately about. You can make a huge impact on our world and environment by giving back with your money and your time. This means, we plan to donate after researching what charities that are out there. Then you give passionately to help make our world a better place by volunteering, sharing a skill or talent, or making a financial contribution.


Investments are items that you can buy which grown in value (think collectables). One investment is called a stock. Stocks are like pieces of paper that you can buy that show you own part of a company. You can buy and own part of Microsoft (Xbox), Apple (iPhones), really anything as long as it's for sale. These are called stocks. Stocks are pieces of paper that show you own part of a company. The pieces of paper are called stock certificates. When you buy the stock certificates, they might be worth $10.00 each. But after some time passes (maybe hours, maybe years), it's worth more. The longer you hold on to that stock certificate, the more it could be worth. You can buy stock certificates from investment companies like Edward Jones. You must be 18 years or older to purchase or have an adult guardian make an account for you.


Becoming financially independent can be an overwhelming process. Learning how to manage a budget, being mindful of your spending, and starting a savings account are three easy steps to set you on the path towards financial success! If you would like to open a savings account or investment account, contact Joy, your local Edward Jones Financial Advisor.


Joy Rollins

Financial Advisor for Edward Jones



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