It might seem like an uphill struggle saving money as a teenager, especially if you don’t have a lot to start with or the little you do have you want to start spending. But it’s not impossible. In fact, it’s a really good habit to get into, as putting some money aside regularly will soon add up.
There are actually lots of different ways for saving money for teens, and good reasons for them to, and this guide will provide lots of useful tips. It can start good habits early, show them the benefit of hard work and planning, and demonstrate the proper value of money.
It’s never too early to become responsible with money, and putting a little aside as a teenager can help you reap rewards later on.
1. Open a savings account
First things first, if you don’t have one, get a teenager savings account. But how much money should a teenager save? It doesn’t really matter how much you put away – it’s the putting it away that counts.
It can be really hard to be motivated to save money when you don’t have or aren’t earning a lot. But saving a bit each day, week or month can help you set a goal to get to.
If you can, try and save a regular amount. This way, you get used to that amount coming out regularly, which helps you budget.
If you have a job or receive money regularly from a parent or relative, the best way to save is to take the amount you plan to add to your savings account straight away so you won’t miss it from those ‘earnings’ – and you can build up momentum and habit.
2. Make a budget
When you’re spending the money you have, think about how you’re going to spend it and how to manage money as a teenager. What we mean is – that you can start to budget. Once you have money, it’s all too easy to just splurge.
This can feel good at the time, but not later when you have nothing left. Making a budget can really help make that cash last.
You could split costs with friends on books, meals out, movies, and so on. If you’re going out to eat and you also want to save – decide how much you can put aside to spend on the meal. If there are cheaper days or times to go somewhere – choose those to help your money go further.
3. Get a part-time job
If you’re old enough, you could secure yourself a part-time or a summer job. Earning your own cash is one of the best ways to save money as a teenager.
Once you start making your own money, you’ll begin learning some really valuable life tools – not just about saving. You will learn about the independence of getting some money and the feeling that comes with having earned it yourself, in addition to gaining experience from the job.
You will also be able to start topping up your savings account with the amount you’ve decided to save.
4. Use your student ID
Depending on your age, you may be eligible for a student ID. It’s not just a nice card to carry around to indicate you are a student, it can help you save money.
Loads of stores now offer a student discount, from restaurants to clothes stores, to entertainment and experiences, both in-store and online. Discounts aren’t usually less than 10%, but if you’re buying a big value item, this can add up.
Plus, if you subscribe to your student card issuer, you often get notifications of bigger discounts or special student days.
It’s also always worth checking if a store offers students a discount as some don’t openly advertise but would be more than happy to provide, so it’s one of the best ways to save money as a teenager.
Making sure you take advantage of all the discounts available to you can make saving a lot easier. It also kind of feels like saving without trying or at least gives you better value on your purchases.
5. Set a savings goal
Perhaps you want a cool pair of new sneakers or a guitar, or to go on vacation to Paris for the summer? Maybe you want to buy a second-hand car or the latest iPhone? Whatever you’d like to buy, setting a savings goal will motivate you to hit your financial target.
Having an amount in mind you want to save will give you far more incentive to keep setting that money aside, than just making random deposits. Visualize your goal as you make your savings and you’ll no doubt reach it in no time.
Saving money as a teenager doesn’t have to be difficult. Follow our simple tips and you’ll be cashed up and turning your financial dreams into reality in no time.