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Being a teenager can be hard enough with the amount of homework and social life crises you’ll be dealing with. However, the next problem in the mix is dealing with the amount of money you have. How can you adapt better money-spending or savings habits that will benefit you as a young adult? In this guide on how to save money as a teenager, we will be going over our top recommended money saving tips that you can take advantage of.
You Can Save Money as a Teenager If You…
Saving money as a teen is incredibly important for the present and the future. Learning how to save money as a teenager can help you to develop the good financial habits for the future. Plus, it can help you to save money for now. Whether you want to save up for a concert ticket, a new computer, or your college education, you will need to build good habits first.
1. Create Financial Goals
The first step in how to save money as a teenager is to set your goals. Before creating any type of budget, it’s important that you set financial goals in place that you need to set money aside for, such as buying a new smartphone. However, this will require time, patience, and discipline, making it a hard concept to endure for teenagers. But, it will offer you good practice for your coming transition to adult life.
2. Sign up for a Checking and Savings Account
It’s important to keep your money well protected, especially at such a young age. This is why it’s crucial to open a checking and savings account, however, you may need a parent to cosign it if you are 18 years of age or younger. You should also note whether your bank charges for fees, such as overdrafts, to prevent losing money on avoidable charges.
3. Create a Budget
Once you start making money and start setting it aside into your checking and savings accounts, it’s important to create a budget. This way, you can better separate what you need to spend on bills and what you can set aside to save. Creating a budget will become a standard practice as an adult, as you will have to set aside money for utility bills, rent, food shopping, etc.
4. Get a Job
Sure, you may be getting an allowance from your parents, but you’ll learn more important life lessons if you get a part-time job. One of the best ways how to save money as a teenager is to get more money coming in. Plus, with a job you can set aside more money in your checking and savings account, which will allow you to spend more on items you wish you had. Not to mention, having more money in your bank account will help you develop better money habits that you’ll need as a young adult.
5. Get a Side Hustle
Now that you have a job, the next best money-making opportunity is a side hustle. This can be anything from delivering papers around town for a few hours a week to mowing your neighbor’s lawn. Generally speaking, it’s a second job that can allow you the opportunity to make more money. Just make sure it doesn’t take up too much time that it distracts you from your schoolwork.
6. Save on Items With Your School-Issued Student ID
Believe it or not, that photo ID card isn’t just for paying for meals at school. It can also help you get exclusive sales on stores and bus fares. If you’re unsure if a store offers discounts with a student ID card, feel free to ask the manager or ask your school guidance counselor. It never hurts to ask around, especially if it can save you money.
7. Determine How Much Money You Want to Save
This is another great tip for how to save money as a teenager. An easy way to start saving as a teenager is to determine how much you actually want to save. Since you don’t have to save up every penny, you want to leave yourself some spending money, determine a specific amount you want in your savings and start aiming for it. For example, if you want to save $200 by the end of the month, divide the $200 by the four weeks in the month, and plan to save at least $50 per week.
8. Spend Less Money
You generally have two main options for making the most of your money, either making more or spending less. Especially as a teenager, it can be challenging to try and make more money, so it’s recommended that you try spending less of the money you have.
An easy way to do this is to consider the money you have and how you can make the most of it without spending it all at once. For example, if you’re going out with your friends and they want to order lunch, consider the option of bringing your own lunch.
9. Save First
Every time you get money in, make sure to put aside your savings first before spending any of it. Saving should be your top priority. This way, you will be less tempted to spend it. Plus, it will help you to stay on top of your savings goal. As soon as you get paid, place the allocated amount in your savings account.
10. Get Smart About Your Spending
As mentioned above, the less money you spend, the more you will have to save. When you do spend money, use your smarts to figure out how you can spend less. Use rewards programs, find discount codes, and wait until items are on sale to buy them. There are tons of ways you can save more when buying products, you just need to know where to look.
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Saving money as a teen is easy if you know what to do. The financial habits that you develop now will follow you for your entire life. So set some goals, create a plan, and spend less money. These are all great ways how to save money as a teenager. Do you have any tips for teenaged savers? Share them in the comments below.