Everyone knows that minimum wage isn't a lot of money. The average minimum wage in Canada is around $8 and hour and similar to that in the United States. But that doesn't mean that you can't use it to build up a good savings.
Most people earning minimum wage are teenagers that want quick money. I have worked with some of these people and they spend their money as soon as they get it. This is a bad idea. Just one dollar a day saved can add up to $365.25. That's a start for starting a successful savings account.
By working just one hour a week someone making minimum wage can save $365.25 granted they don't spend on anything. Remember wages are taxed too, so I left out the extra dollar for taxes and very small spending.
The average person who makes minimum wage works around sixteen to twenty hours a week with vacation pay. That means someone could potentially save $8 x 16hours x 52 weeks which is $6,656.
The average job's vacation pay is 4% of the pay so multiply $6,656 by 4% and you get $266.24 in vacation pay to add to your savings account. This is now a lot of money.
A little, tiny bit of work adds up and with the proper tax returns and steps taken, someone can save a massive amount of money over a few years.
A teenager whom is 15 years old can have $20,766 by the time they are 18. That is a lot of money at just a minimum wage.
Wage increases also occur along the way and someone who started making $8 an hour could be making $11 an hour by the time they were 18.
So you see it is actually very possible to have large amounts of safety money when you are young.
LINKS TO SIMILAR ARTICLES:
http://www.thesimpledollar.com/2006/12/20/teds-dilemma-planning-for-the-future-on-minimum-wage/
http://tightfistedmiser.com/2007/10/13/saving-on-minimum-wage/
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