Be Smart about Using Money
There’s no question that money is a good thing to have. You can use it to buy things you need (such as clothes) and things you want (such as an MP3 player).

How can you make sure you have money when you need it? If you get into the habit of making good decisions with your money now, it will be easier to handle your money when you’re a little older.

First, think about your allowance. If you’re lucky enough to receive a weekly allowance, ask your parents if they will “pay” it to you on a certain day each week. This will be similar to their payday—and it will help you plan to use your money.

Also, ask your parents what types of things you’re expected to buy with your allowance. For example, do you need to spend some of your allowance on lunch at school (if you decide not to take a lunch from home)?

Next, think of all the ways that you can save money. Here are some ideas for you to try:

• Save extra money in an envelope at home. Then, if there’s an emergency and you need a little extra money, you’ll have it. This is similar to what adults do when they say that they are "saving for a rainy day."
• If you receive a large amount of money for a gift, ask your parents to take you to the credit union so you can deposit the money in your savings account. (If you don’t already have an account in your name, ask your parents if they’ll help you open one.)
• If you receive a savings bond, ask your parents to explain how much the savings bond is worth now, and what it will be worth in the future. Ask your parents to keep the bonds in a safe place and to give you a record of the amounts.

Get Help from Parents
Your parents probably know a lot about how to handle money. Ask them for tips—and how they decide:

• What they’ll spend the money on
• How much to save each month
• How much they can spend on vacation

You can also volunteer to help your parents with their errands. For example, offer to go grocery shopping with them. While you’re there, you can compare the prices for some food. For instance, read the shelf labels on several brands of peanut butter, and tell your parents which is the least expensive for the same size.

If you practice now, you can be an expert at handling your money when you’re older!