Money Talks, and so should we. Here, powerful women get real about their spending and saving habits.

Demi Lovato
Credit: Monica Ahanonu

Demi Lovato has been in business since she was 10 years old. The songstress, now 25, first dipped her toe in the entertainment waters with a stint on Barney & Friends (where she met BFF Selena Gomez), and her mega-singing and acting career has been skyrocketing ever since. Last year, she expanded to fashion, teaming with Kate Hudson’s activewear brand, Fabletics, adding designer to her resume. Along the way, she’s learned a thing or two about making sure there’s money in her bank account.

She’s also almost as talented at draining it, Lovato jokes. “You’re only on this planet once, so you might as well enjoy what you’ve worked hard for,” she told InStyle recently at the launch of her Fabletics summer collection at the brand’s store at The Village at Westfield Topanga, Calif (new styles available today).

Demi Lovato Fabletics
Credit: Courtesy Demi Lovato and Fabletics.

But she’s not frivolous with her cash. In fact, Lovato’s got a genius money-saving hack that'll saves her oodles of money—and make you laugh: Instead of online shopping, she scours the Internet for fashion finds, drops them in her shopping cart … and then empties it out before she can hit “buy.” (More on that tactic below.) That said, this summer may call for some new wardrobe additions; after a recent foot fracture landed her in an air cast, she says, “There’s concerns because I have to tour in this boot. So I’m like, what am I going to do with my outfits?! We’ll see what happens.”

Here, Lovato opens up about her cardinal money rule, her $14 paycheck, and splurging on a private island for her recent extravagant squad vacation.

On what she learned about money from her parents… My stepdad has taught me how to be smart with my money. But at the same time, I’ve also learned that you can’t buy experiences, and sometimes you have to spend a little to get an awesome vacation, or whatever it is. It’s like, you’re only on this planet once, so you might as well enjoy what you’ve worked hard for.

On her biggest splurge… I took a bunch of people on vacation to Fiji and then Bora Bora. We were the only people on this island. It was a lot. It was a splurge because I wanted my privacy, but it was really fun.

On her budgeting advice… My advice to [young women] would be if you work hard, then it’s okay to treat yourself, but just be smart with it. Don’t buy shoes before you pay rent.

On her money-saving hack… Sometimes, when I go online shopping, I just put things in the cart, and then I exit out of it so that I feel like I went shopping, but I actually didn’t buy anything [laughs].

VIDEO: Demi Lovato’s Baby Sister Looked Exactly Like Her on Her Sweet 16

On her very first paycheck… There was this place called Johnny High. It’s a country music hall in Dallas, Tex., and they gave you a dollar for every person that you brought. I brought 14 people, so, I made $14. That was my first check. I was so excited.

On whether she saved or spent it… I’m sure I spent it.