Open an account and save whatever you can for the rainy day.
Last month, we saw how there are opportunities galore for young people like yourself to earn money. Have you started to scout for these opportunities in your neighbourhood? Very good! Now that you have those coins jingling in your pocket, what should you do with them? Buy some comics, perhaps? Or buy some cool game for your Nintendo DS 3D?
But wait! There are other smart things that you can do with your hard earned money. Firstly, you need a safe and convenient place to store your cash. What are your alternatives to safely store your money? Under the mattress? Piggy bank? Give it to your parents to save it for you? But hey, have you thought of having your own bank account?
These days there are a number of banks, both Indian and foreign, that offer very exciting bank accounts for children. What are some of the things that you get to do when you open an account with these banks? Firstly, a lot of these banks allow you to have your own debit card. ATM stands for automatic teller machines and you can use your debit card to withdraw money anytime from a number of convenient locations. Say you want to buy your favourite ice cream on a particularly hot day and you are not carrying any money with you. Not to worry! You can go to the nearest ATM machine and withdraw money to buy ice cream. That is convenience for you.
Secondly, several banks give you free personalised cheque books. You can use this to make your payments, when you buy something big ticket with your money. Just ensure that you are not issuing cheques for very small transactions and also ask whether the other party is happy taking payments in the form of a cheque. With a cheque book, it is easy to go through your bank statement and keep a record of your payments. Make it a point to go through your bank statement at the end of every month. This will give you a very good picture of your spending habit.
Young World Money-Wizards Quiz #12
This famous American investor first coined the term “ten bagger”. It means making 10 times the money that you have invested from a stock. He paid for his college by caddying for rich golfers and then investing the money he earned on a stock that became a ten bagger.
E-mail your answers to email@example.com. The first four correct answers and the most articulate answer within seven days will each be awarded flipkart e-vouchers worth Rs. 250. The results and the answers will be published at:
Money Trivia: The early bird
Do you know that the legendary investor Warren Buffet was financially savvy from a very young age? Even as a boy, he was always looking for ways to make money. At the age of 13, he filed his first income tax return! And he claimed a $35 tax deduction for his bicycle. How cool is that?
About Money-Wizards: A company in financial literacy and money education. They conduct workshops and after school classes on money education for school children. If you want Money Wizards programmes in your school or neighbourhood, write to Info@Money-Wizards.com