by Linda Piepenbrink

Perhaps you can afford an iPod, fast food, or a cell phone because of a good part-time job—or generous parents! Or maybe you’re already having trouble affording your current lifestyle (road trips, DVDs, eating out with friends). Have you considered those bigger expenses up ahead—a car, college education, wedding, children, house? How do you plan to pay for all that?

"The foolish person is walking through life living paycheck to paycheck, not looking ahead at all, and pretty soon—bang—I need a car—bang—a wedding—bang—it just keeps going," says Dr. Mike Duffy, who directs Maranatha’s Department of Development and Stewardship Services. Unfortunately, he learned about managing money from the school of hard knocks.

"I had no instruction and no example," he says. Although he regrets not learning the value of saving money as a teen, he did budget his money. "That kept me from making some really foolish purchases, such as spending too much money on cars or having credit card debt," says Dr. Duffy.

You don’t have to have a big bank account to learn how to manage your money and avoid spending pitfalls. Here are some simple strategies to start now:

Track your expenses.
Get a columnar pad or open an Excel file. (See sample budget.) In the top left column, record your income, including employment, allowance, or cash gifts from relatives. Below that, record your monthly expenses (such as tithe, gasoline, clothing, gifts, and hobbies). In separate columns to the right, type in the months (Aug., Sept., Oct., etc.). Keep track of your receipts and record your actual monthly expenses in each category (e.g., $20/month for gas). Do your monthly expenses add up to less than your income? If you are unable to live on less than your income, you must reduce expenses or find ways to increase your income.

Do some trimming.
Ask yourself whether something is a necessity (such as tuition payments) or a luxury (such as magazine subscriptions or eating out). Then trim expenses by eliminating luxuries. (If you stopped buying a 50-cent can of Mountain Dew every day, you would save $15 a month, or $180 a year!) Never spend more than you have budgeted, and never buy a big-ticket item until you can afford it without a co-signed loan.

Use envelopes.
One way to budget your money is to divide your earnings and gift money among envelopes labeled for each of your expense and saving categories. When your entertainment money is used up for the month, do not borrow from other envelopes.

Prioritize your money.
As soon as you get paid or get a gift of cash, you have four priorities. After first giving to the Lord, you should save for short-term responsibilities (for youth activities, gifts, etc.), then save some for long-term needs (college, marriage), and finally use the rest as you desire (for saving, spending, or giving away).

Give to your local church.
"The silver is mine, and the gold is mine, saith the LORD of hosts" (Haggai 2:8). When you put money in the offering plate, you’re simply giving back to God a portion of the money He entrusted to you. Ten percent of whatever you make (before taxes) is a good starting point. Also look for opportunities to give sacrificially to missionaries or a needy family in your church or neighborhood. Be discerning. It’s not necessary to give to everyone or to give away everything you have. When you do give, don’t expect praise or anything in return. You might even want to give in secret (Matt. 6:1-4).

Set goals.
Identify and write down some financial goals. Do you want to buy a mountain bike or prepare for college? The earlier you begin to save money, the more time it has to grow. Consider this: If you saved and invested $2,000 every year (that’s about $166 a month) from age 26 until age 65, the $80,000 you invested until retirement could grow to $975,000, thanks to the power of compounding interest.

Avoid the credit card trap.
Don’t be fooled by credit card companies that promise you zero percent interest or 12 months same as cash. Those supposed benefits can quickly turn into 20-percent or higher interest rates and consumer debt. According to national statistics, the average household has 10 credit cards and carries $8,000 worth of credit debt! And what happens when you don’t have money to pay your bills? Are you going to quit school and go to work full time? Don’t count on your parents to bail you out. Studies show that people spend less with cash than they do when using plastic.

Make some moolah
Want to increase your income? Try babysitting, pet-sitting, tutoring, counseling at a summer camp, doing yard work, creating websites, working in a department store (while enjoying employee discounts), or selling jewelry or other items on eBay. Get creative—offer to do chores for siblings or jobs for neighbors in exchange for money. Sell clothes you no longer wear at a consignment shop, do a paper route, or be a golf-course caddy.

More Tips for Smarter Spending

These questions will help you resist impulse purchases:

• Go to thrift stores and garage sales for bargains instead of hitting the mall.
• Pass the shopping carts and buy only what you can carry in your arms. You’ll spend less, guaranteed.

• Before buying something, ask yourself, "Would the Lord be pleased with this purchase? Do I really need this item?"