I stumbled upon these savings and money management tips from First National bank. I once took tips from my bank and I ended up with a whole lot of accounts I never knew I needed. But hey you can take what you want from this, there are a few very valueable ones.

Banking tips for 20, 30 and 40 year olds
TIPS FOR 20 YEAR OLDS
 While millionaires can be created instantly at the roll of a dice, the announcement of a lottery winner or through a huge inheritance, you can gain your fortune through sound financial management by starting at an early age.

 As employers may check your ITC record, it is vital that you pay all your debts. So, even though you may feel excited about earning a salary, make sure you always have enough money to pay your accounts on time. In this way, if you want to change jobs, it will be easier as you will be able to show that you are responsible and can meet all your financial obligations. This is also vital if you want to apply for credit in future, for example, a car loan.

 Young people can make a great difference to their lives by getting into the habit of saving a little every month. Instead of spending their entire money on unnecessary items such as fashion, they should buy what they need and save a certain set amount each month.

 There is no amount too little to save; so save whatever amount you can. If, for example, you sign a debit order for R100 a month to save, you won’t even notice that the money isn’t available to spend on other things. Then, you can never feel that you don’t earn enough to save something – you get used to having a disposable income to spend that’s less the R100 you put away.

 Do not fall into the debt trap. To avoid this, young people must not depend on credit cards, overdraft and loans. Instead they should only take out a loan to grow their lives or to augment their savings so they can achieve their worthwhile goal.

 One of the greatest benefits to young people starting to save while young is that they can grow their money because of the benefits of compound interest, which is interest earned on interest.

 However, if young people do not have a thorough understanding of personal finance, they should speak to a financial consultant so they can choose a good retirement investment and should, for example, understand if their money will be invested locally or overseas and which funds have been used for their investment, for example, property or equity.

 Young people should carefully monitor their investment over the years and not just sign a debit order and forget about it until retirement. They need to take responsibility for their own investments because their own financial future is at stake.

 So, if you are looking forward to your first pay cheque, think before you spend it all on luxuries. Instead, learn to budget and think about how you could start getting into good financial habits early on so you can look after your financial future.

 Tips for 30 and 40 year olds
 By saving money you can tide yourselves over in case of an emergency, for example, should you be faced with high medical costs (not covered by medical aid), a leaking water pipe or the breakdown of a car.

 It is also a good idea to have three months take home salary in an account in case of retrenchment to help you until you find a new job. This is very important because, if you lose your job, you will not be given credit advances and you will still have to pay instalments, for example, if you have borrowed money to buy a TV or if you need to pay rent.

 Teach your children about more effective ways of handling their finances from an early age. Children should know about budgeting and saving from a young age.

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