Have you ever received pocket money or a gift on your birthday and spent it all at once, only to wish you had saved some for later? Learning how to manage your spending is super important, not just now but also when you grow up. When you know how to use your money wisely, you can buy the things you truly want and even save for bigger goals! Here are some tips to help you learn, practice and spend wisely
Separate Needs from Wants
Let’s say you have N5,000. You see your favourite biscuit for N2,000 and a toy car for N4,500. You also need a new pen for school. What do you buy first? The pen, because it’s a need—something important for school. The biscuit and toy are wants—things you like but can wait for. As adults, people also make these choices. Imagine your parents deciding between paying school fees and buying a new phone. Learning to focus on needs first helps you avoid regrets later!
Create a Simple Spending Plan
Have you heard of a budget? It’s a plan for how to spend money. Try this: if you get N10,000 for the week, decide how much goes to lunch, snacks, savings and entertainment. For example: N5,000 for lunch and snacks; N2,000 for saving; and N3,000 for gifts or entertainment. Grown-ups use budgets too! They plan for rent, food, transportation, and savings. By practicing now, you’ll become a money-smart adult who always has money for what matters.
Save for Special Goals
Have you ever wanted a cool backpack or soccer boots? Instead of spending all your money on sweets, save a little each week. For example, if you save N2,000 every week, in five weeks, you’ll have N10,000! That’s how big dreams come true. Adults save for things like cars, houses, or vacations. Savings help them reach these goals without borrowing money. Learning to save now means you’ll be able to buy things you want without stress later.
Think Before You Spend
Before spending money, ask yourself: Do I really need this? Will I still like it tomorrow? Sometimes, waiting for a day helps you realize you don’t need it after all. Adults face this too. They think carefully before making big purchases like electronics or furniture. Learning to pause and think before spending will help you make smart choices now and in the future.
Learn from Mistakes
Maybe you spent all your money on sweets and had none left for a class trip. That’s okay! Mistakes teach us to make better choices next time. Talk to your parents or teachers about how they manage money—you might learn some cool tips! Even adults make money mistakes, like buying things they don’t need. What matters is learning from them and doing better next time.
Why Managing Spending Matters
When you manage your spending, you always have money for what truly matters. It means you can:
Buy things you really want.
Save for future goals.
Help others when they need it.
Avoid feeling sad when the money runs out too quickly.
And as you grow, these skills will help you buy your dream car, travel the world, or even start your own business! So next time you get some money, remember spend wisely, save patiently, and plan smartly. Your future self will thank you!
To learn more about these and other life skills, please click the link below to get a FREE copy of our storybook "Birthday Savings for Omo" and learn more about other amazing storybooks and games you will enjoy.
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