Expert: Gina Boykin - 11/26/2008

Question
Hi! This Christmas I want to buy myself the new iPod nano in purple, which is $150. I have a friend that might buy it for $70-75 and I have about $30 or so in my wallet. I only get $5 a week for allowance if I keep my room clean, but I get extra if I do more around the house. I am helping my mom with stamping cards for her work right now, and I get $20 for helping... if I do all the work. I am still unsure if my friend will buy my iPod or not... but if she does, how do I save money for that, and if she DOESN'T, how can I save for that also? I don't really want to take money out from the bank either because I don't have too much in there right now... Thanks so much!
~Rebecca

Answer
When saving toward a goal, the first step is to set the goal, which means you need a specific amount to save. The cheaper you can get your iPod, the less time you'll need to save. So let's start there.

Do you mind getting a used iPod? Look on eBay and craigslist to see if you can get one for a cheaper price.  You'll probably want to save for the entire amount of the iPod.  That way, if your friend is not able to buy it, you won't be disappointed, and if your friend does buy it, you can put the money in the bank and start saving toward another goal.

Now, let's work on ways to save money.

You mentioned that you can help your mom and make $20.  How often does she need this help?  If you can stamp cards two times before Christmas, you will have $40.  If you can do it three times, you'll have $60.  Add your $5 a week allowance, and that's an additional $20!  You're well on your way already!

Here are some other ideas to make money:
1. Babysitting
2. Petsitting or walking dogs
3. Extra work around the house (cleaning windows, raking leaves, washing dishes)
4. Washing the car (for your family or the neighbors)
5. Do you have any toys, gadgets, or clothes that you no longer want? If they are in really good shape, you can take them to a consignment shop.  This type of store will sell your items for you, and give you part of the money once the items are sold.
6. Do you know anyone that's struggling in a class that you're pretty good at? Can you tutor that person?

Be creative, and talk to your friends and family and I'm sure you'll come up with some ways to make money.

If you show that you're serious about saving for this gift, you could ask your family about paying part of the cost.  If you save for 3/4 of the cost, will they chip in the rest? It's worth a try!

Once you start saving, put the money in the bank so you're not tempted to spend it.  That's the last step to reaching your goal!