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Financial Literacy
Course: Financial Literacy > Unit 11
Lesson 2: Saving and budgetingWays to save money on your monthly bills
All it takes is one day to start making an impact on your finances. Learn ways to save money on your monthly household bills.
The material provided on this website is for informational use only and is not intended for financial or investment advice. Khan Academy assumes no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.
Khan Academy doesn’t provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
The material provided on this website is for informational use only and is not intended for financial or investment advice. Khan Academy assumes no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.
Khan Academy doesn’t provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Want to join the conversation?
- Would anyone actually use 7 gigabytes, as mentioned at? I know that one gigabyte alone is about 1000 emails and 20 hours of searching for things on the web, over the course of a month. 1:38(4 votes)
- People may play mobile games, watch short videos or navigate with maps without WiFi like in subway or your car.(12 votes)
- For renting, nowadays isn't it actually cheaper in the long run to buy? I know that rent is becoming very expensive these days.(3 votes)
- Depending on the location, you are absolutely right. For example.
If you wanted to buy a house in San Diego, the average house cost is about 442,300 dollars. That might seem like a lot but if you pay $2000 a month on mortgage every month on a house that is 287,600 dollars, (while it will take a very long time) in 12 years, you now OWN that house. Its all yours. No more rent.
However, lets say you just love love love that apartment you just saw and lived there for 10 years (adults don't move around as much as you think they would) and the rent was 2,600, you just spent $312,000. And you dont even own it.
In less time, you just spent more money, and you never got to even own that house.
At the end of the day, Its what matters most to you.(6 votes)
- Isn't it cheaper in the long run to buy?(3 votes)
- oh lord unit 1, 2, and 3 were so much better paced THIS IS TOO MUCH INFO---so not the vibe(3 votes)
- specific money are put out in the bank(2 votes)
- Solution: use Youtube for free.(2 votes)
- is that how you save money?(2 votes)
- what is something we think we need that we really dont(1 vote)
- I don't need revenge, but I have fantasizd about it.
I don't need anger, but I've wasted too much time on it.
I don't need gossip, but I've enjoyed listening to it.
I don't need a "cool" car, so now drive a functional one.
Stuff like that.(1 vote)
- how much do all the bills after tallied up usually equal for a fresh out f college student.(1 vote)
- There are some questions that go into this. If you live in a city with good public transportation, then you don't need a car, car insurance, car maintenance or fuel, but you have to budget for busfare.
If you will stay dependent on your parents for health insurance, then you don't need to budget for that.
If you will share housing with other people, then you reduce your monthly rent by the amount you won't have to pay.
If you will cook on your own, you can reduce your monthly restaurant bills.
If you will shop at the Goodwill instead of at the mall, you can save on clothes and shoes.
If you will rely on the public library instead of have your own wi-fi, you can save on internet costs.
If you get the cheapest cellphone plan out there, and buy your phone from eBay or someplace like that, you can cut your phone costs.
So... there's no way for someone outside to tell you how much the bills will amount to.(1 vote)
- Is there a class for couponing?(1 vote)
Video transcript
Finding ways to save money
may be easier than you think. By setting aside
just a few hours – or an afternoon
every now and then– to do a little research on some
of your biggest monthly expenses, you may be able
to save hundreds, maybe thousands
of dollars a year. Here are some ideas
to get you started saving on some of your bigger expenses- things like television,
cell phones, utilities and insurance. Almost everybody
loves television and it’s no secret
that services such as satellite or cable TV can be pricey. Thinking about
how you use your TV could be a good way
to start trimming expenses. For example, you may consider
switching to antenna TV. The technology has come a long way
since the days of bunny ears, and so has
the quality of the picture. The FCC has an interactive map that shows which channels
you might get in your zip code. Check out fcc.gov
to find out more. Combining antenna TV with the occasional
movie rental, or an online streaming service– like those web-based services
that have shows and movies that you can binge-watch
all weekend might cost you
a little bit up front, but it could save you hundreds
of dollars over the course of a year. Now, if you decide to go
with satellite or cable– shop around and negotiate. You may find a cheaper option, or your current provider may be
willing to lower your monthly payment to keep you
as a satisfied customer. A couple of phone calls
could save you money each month. Speaking of phone calls, you may want to look
at your cell phone plan to see if you can cut down
on costs there too. Data and texting plans
can be expensive, so make sure your plan
reflects how much – or how little
you use your phone. You might also make
some changes to your habits that could help you trim costs. If you use a smartphone, there are apps that allow you
to track your data usage and even set alarms
when you get close to a monthly limit. By avoiding large
downloads on the go, you might be able
to scale back your plan. Pre-paid plans might also
be a money saving option. Or you might consider
a Family plan if you have more than
one person in your household. Just remember, as with anything, pay attention to all
the details of the plan when shopping around for deals. Finally, if you need
to use a phone for your work, you might consider
checking with your employer to see if they might cover
your cell phone expenses. Or, if you’re self employed, you might be able to get a tax
deduction for your phone expenses. Next, let’s look at housing– it’s probably
your biggest expense. If you rent, you might be able
to ask your landlord about giving you a better deal
when it’s time to renew. Take a look at the going rate
for similar apartments in your area to see if it makes sense
to renegotiate. Most landlords don’t want the vacancy
that comes with a turnover, so if you’ve been a good tenant, they may be willing
to work with you. And when it comes
to household expenses, energy can be a big one, particularly
if you’re a homeowner: A programmable thermostat
is one way you can save. They’re relatively
easy to install and they can help you
save significantly on your heating and cooling bill by raising and lowering
the temperature automatically when you’re not at home
or when you’re asleep. You can go one step further by getting an energy audit
of your home. Your utility company
may offer free energy audits that can give you valuable ideas on how to save
on your energy bill that are specific to your home. You can start to find out more and get additional tips
on saving energy from the Environmental
Protection Agency’s Energy Star website
at EnergyStar.gov. Another place
you may be able to save big is on your insurance. Many people bundle
their policies, such as homeowner’s
and auto insurance with one carrier. That can often bring
substantial discounts. You might also cut
some insurance costs by making upgrades
to your home – like installing
a security system. And if it’s been a few years
since you have shopped for insurance, you may want to shop around
instead of just renewing. This can be particularly helpful
on health insurance if you’re responsible
for buying your own insurance since the prices of these plans
change frequently. There are several websites where
you can compare plans and prices. But pay attention
to what the plan offers and the details,
such as premiums, deductible amounts
and co-payments... The least expensive option
may end up costing you more if it doesn’t cover
what you need. It may be hard to get started, but just a little bit of research
and a couple of phone calls could make a big difference
in your budget almost right away. And sure, spending an afternoon
researching your monthly expenses may not be as thrilling as,
say, a day at the beach, but rolling up your sleeves
and doing some work on this may help you save hundreds,
maybe thousands of dollars each year. That’s money
you might spend on a vacation