ALBUQUERQUE, N.M. — April is Financial Literacy Month so we brought in our local expert who shared two big tips that can help you as you’re saving money.

David Hicks, a financial planner at Oakmont Advisory Group, says a recent study shows 1 in 3 high school graduates didn’t feel financially prepared for the real world. These tips can help, he says:

1. Know the 50/30/20 rule

This rule suggests you spend 50% of your money each month on what you need. That includes utilities, rent or mortgage payments and anything you need.

Then, 30% on what you want and 20% on savings. Things you want, like an extra cup of coffee, and savings like a retirement fund.

2. Learning and understanding compound interest

Earning money on your money is huge. If you understand the 50/30/20 rule and put your money into high-yield savings accounts, 4-5% returns, compound interest will make your money balloon.