Money doesn’t grow on trees

Does money grow on trees? How can you get money if there is something you want?

Accessibility icon Money doesn’t grow on trees

No, money doesn’t grow
on trees

Do people really think it does? Why do we hear this phrase so much, and what do people actually mean when they say it?

It would be fantastic if we could get as much money as we wanted without doing anything, like money falling from trees straight into our pockets!

But that’s not how things work for most of us. We can’t always get everything we want, and we can’t rely on someone else to pay for everything. We need to work and save our own money to buy the things we want.

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Saving

Do you get money as gifts for special occasions? Do you work part-time after school or during the summer? Or do you receive a weekly or monthly allowance for doing chores at home?

It’s a good idea to try and save some of your money. Putting your money into a separate savings account is a smart move, as these accounts often have higher  interest rates than checking accounts, which means your money will grow faster.

It’s best to start saving early, even if it’s just a little bit. What do you think is a good thing to save money for?

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Earning your own money

It can be difficult for young people to find a job, but there are other ways to earn money. You could try doing small jobs for your neighbors or people you know, or look for a part-time job that will pay you.

When you work for a company, you’ll get a payslip and some taxes will be taken from your pay if you earn more than the tax-exempt amount.

You won’t be paid during holidays, but you’re entitled to holiday pay, which is 10.2 percent of what you earned the previous year.

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Paying taxes

Tax exemption card

If you earn less than 70,000 Norwegian kroner (NOK) per year, you should have a tax exemption card. You give this card to your employer to show that they don’t need to take any taxes out of your pay, as long as you stay under the limit. If you got holiday pay this year for work you did last year, it will count towards the 70,000 NOK limit.

It’s important to know that the government changes the tax exemption limit every year. The 70,000 NOK limit was set for the year 2023.

Tax deduction card

If you earn more than 70,000 NOK a year, you need a tax deduction card. This card tells your employer how much tax to deduct from your salary before paying you. The Norwegian Tax Administration calculates your estimated tax based on your expected income.

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Read more about young people, work and tax here

Means of payment

A means of payment is something used to pay for goods or services. In Norway, money is the means of payment and can be in the form of cash, credit, or electronic money.

Cash or card?

Cash means banknotes and coins, while cards refer to payment cards. Nowadays, many people prefer to use payment cards and electronic money. 

Electronic payment through online platforms and apps is also common, such as Vipps.

There are two types of payment cards: credit cards and debit cards. Sometimes, you can have these variations on the same card.

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Credit Cards

A credit card is a card that allows you to borrow money up to a certain limit. You can use it to buy things even if you don’t have enough money in your bank account.

Every month, you will get a bill telling you how much you owe and the smallest amount you need to pay. You don’t have to pay all the money at once.

Sometimes it can be good to use a credit card, especially if there is a good deal you want to take advantage of. But if you don’t pay all the money you owe right away, you will have to pay more because you will have to pay interest and other fees. This is why it’s usually a good idea to avoid using a credit card if you can.

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Debit cards

A debit card is a regular bank card that takes the money directly from your bank account. You have to make sure you have enough money in your account before using it.

Sometimes, there may be a small fee for withdrawing cash or purchasing goods and services.

Using a debit card is a good way to control your spending because you can only spend the money you have in your account. It also helps you keep track of your finances.

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Take charge of your own wallet!

Even though it might be tempting to wish for an easy road to wealth, it’s important to realize that it doesn’t come on its own, and that you have to work to earn money.

This might sound serious and boring, but working to earn money and saving up for things you want can give a feeling of satisfaction and self-confidence. So, even though it would be easy to have money trees, it’s best to take responsibility for your finances and work hard to reach your goals. Learning to take responsibility for your finances is a very important part of growing up.

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Sources:

  • Meinich, Per: penger i Store norske leksikon på snl.no.
    Hentet 18. november 2021 fra https://snl.no/penger
  • Torvund, Olav; Anderssen, Harald Benestad: betalingsmiddel i Store norske leksikon på snl.no.
    Hentet 18. november 2021 fra https://snl.no/betalingsmiddel

 

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