Saving is priceless

A week later, my dad approached me about getting a job at his clothing distribution business the next summer. I felt like I would be letting him down if I said no. So I said yes, but was reluctant. I didn’t want to wake up early in the morning. Even worse, I was going to be a box boy—making, opening and moving boxes. I hated physical labor. I just hated sweating. My mom said, “It will be a great way to learn the importance of making and managing your money.” I ignored her. It was one of her long lectures on the important things in life that I never listened to.  

Summer began and soon it was my first day at my job. I woke up at 7 and went to work with my dad. I’ve been to my dad’s business countless times, but this time was the worst. I worked hard. I sealed plastic over clothes and moved boxes of clothes from one area to another. The day went by really slow. At the end of the day, my dad gave me $55.

I could finally buy what I wanted

Photo illustration by Sasha Jones, 18, Crossroads School (Santa Monica)

The next Saturday, I bought an expensive Manchester United soccer ball and two soccer jerseys that cost around $120 all together. I was obsessed with soccer and wanted the latest European jerseys. I spent the rest of my money on food.

Every time I got money, I spent it. It was different when I had an allowance. Because I had a limited amount of money, I always decided whether I really wanted to buy something. Now I was wasting money on whatever I wanted. Spending was almost compulsive. If I liked something, my mind told me to buy it because I had a lot of money with me.

My parents noticed how much I was spending and confronted me. I had made about $400 and had only $40 left. My mom said in Korean, “Se, you need to learn to save some money.” I usually ignore my mom, but this time I actually took in what she said. I had a lot of new stuff but these things weren’t really important to me. I realized that I had worked so hard only to spend my money on stupid, trivial things. So I made a pact with my mom to cut down my spending and start saving.

The next weekend, I went to the local Bank of America. My dad and I applied for a savings account for teens. It was free to open an account and there was no minimum amount required. I could withdraw and deposit money by myself without my dad. My dad said I could keep $20 for my allowance but should save the rest so I deposited $180. For the next couple of weeks, I deposited most of my money in the bank. Saving felt better than spending. Spending gave me short-term happiness, but saving made me more confident as I started to see my account balance go up. Although I wanted more than $20 each week, I had no doubts about what I was doing. I felt happy seeing the money in my account grow.

My savings grew

I had a little less than $1,000 in the bank by the end of the summer. I was proud of myself and happy that I saved so much rather than spent everything.

My dad then asked if I wanted to invest my money. He said, “As a person growing up, you need to know when to invest and make your money grow.” I agreed. It made me excited. Having my money in a bank account and seeing it progressively grow was good, but seeing it double or grow even more would be even better.

My dad invested the money in stocks. Although I can’t touch the money, the value of the stocks did go up a little. We get reports from my dad’s accountant on how the prices of the stocks have changed. I was fascinated to see the money go up and down and eventually level off.

I know this experience will help me as I get older. As I start to make money, I will save, invest and be frugal. I’ll spend money, but try to do so on what I really need, not on what I want. My dad always says, “It’s not how much money you make, but how you spend it.” I made a little, but ended up saving a lot.

Click here to read Christina’s story about how working since 13 has taught her a strong work ethic.

Be sure to choose a bank that:
• Will help you earn the highest interest on your savings
• Does not charge fees for using your account
• Makes it convenient for you to add to your savings

Questions to ask when choosing a bank:
• What is the minimum amount of money I must have in my account at all times?
• Are student or youth accounts available?
• How much interest will my account earn?
• How much will I be charged if I don’t keep the minimum balance, I make a deposit or withdrawal or if I use an ATM?

It’s in our hands. Once Se, 16, learned about global warming, he realized that we all can do something about it. (September 2007)