Young adults today face the unique spending challenge of having anything they could possibly put on their wish list at their fingertips. With unlimited spending possibilities and vibrant social lives, you might find yourself dreading the moment you check your bank balance. You might wonder “How can I spend less money?” But you’re not alone. In fact, in a survey done by Intuit, 49% of young adults reported living paycheck to paycheck, while 61% reported being affected by financial stress. However, spending less money isn’t an impossible feat; in fact, there are some simple tricks that can help you practice smart spending without worrying about missing out on the fun things in life.

The biggest setback young adults experience when it comes to overspending comes from the instant gratification of an impulse buy. However, restructuring our thought process is one example of how to spend less money without getting FOMO:

• Make a wish list. If you see something you like, add it to your wish list and come back to it after a couple of days. Odds are, if you forget about it or lose interest, it would have been a frivolous purchase.
• Get an outside opinion. Often, getting another perspective from friends, family, or even on social media can help present benefits and tradeoffs you wouldn't think of otherwise.
• 3-month rule. Think about where you see yourself using the product in 3 months. Is it collecting dust somewhere? This can give you a good framework for how necessary it is.

In terms of social spending, it is easy to get carried away when going out with friends. Here are some tips to help you spend less money when going out:

• Small swaps. Water instead of soda, dinner parties at home instead of eating out (so much fun!) ... You get it! Small changes can add up to big savings
• Set a quota. Limit your spending to a certain frequency. For instance, instead of getting an iced coffee on the way to work every other day, make it something you do on Fridays.
• Plan social outings in advance. While spontaneity is fun, planning in advance can allow you time to figure out how much money you are going to spend, which allows you to set that amount aside and budget around it.

To learn more about good spending habits, check out GTE's Cash Academy program, which allows you to learn through self-paced modules while earning a $50 reward upon completion.

The opposite of spending less money is saving more money. However, there are plenty of ways to make saving easy, fun, and rewarding, including:

• Making it a game: Turn your savings into a challenge! Create your own goals, or utilize a pre-planned savings challenge, like GTE’s 52-week savings challenge .
• Making saving second nature: Make it a habit to deposit a percentage of your paycheck into your savings account or set up an automatic savings program. GTE offers its own Future Change Program, where your extra change on debit purchases automatically goes into your savings account.
• Opening a high yield savings account: High yield savings accounts encourage you to keep your money in one place because you earn dividends. Basically, your money will make money itself. If you have some money that has been sitting in the bank for a while that you don’t plan on touching, you acquire a share certificate or put the money into a money market account.
• Kicking it old school: Reject the idea that cash is “free spending money” and embrace the idea of stashing your bills for a rainy day. Keeping your money as cash in a safe space (bring back piggy banks!) can help you to be less tempted to spend them.

Budgeting your money takes discipline, but the payoff is great. Since you are allocating your money more mindfully, you will be less likely to spend on a whim, ultimately teaching you how to spend less money. As a young adult, you might think about budgeting:

• Money for dining out (or any other social spending you might do)
• Money for shopping
• Money for your savings/emergency fund
• Any other necessities that you pay for

A fool-proof budgeting method is the 50/30/20 rule:

• 50% of income toward necessities
• 30% of income into your checking account
• 20% of income into your savings

These percentages might vary based on whether you receive an allowance, take on a part time job, or have a more volatile job like babysitting. However, a structure like this is great for keeping you on track to save more and spend less. Reframing your mindset around spending, saving, and budgeting is the easiest way to spend less money. Open a student savings account at GTE Financial with that extra money today to start saving and practicing smart spending.

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