Author Bio: Hey, I’m Chris. I have a degree in Business Economics from the University of Liverpool, own a small fast food business, and run LifeUpswing.com. I will help you to make money, save money, and think about money in a way that will give you back your freedom.
Saving money is hard for anyone at first including teenagers. However, if you build good savings habits now, then it will be much easier to keep saving when you are an adult! After all, if you are putting in the hard work of earning money as a teenager, then you’ll definitely need some good tactics for saving it!
No doubt you and your friends want to spend on things like new clothes, gadgets, and going out. That’s OK in moderation but if you are strategic and savvy you can save money at the same time!
The tips below will help you save money as a teenager. Whether you want the latest phone, to travel when you’re older, or to add to your college fund these tips will help you achieve your savings goals.
How to Save Money as a Teenager
By following some or all these tips you can save money. Remember, ask your parents or guardians for help if you are unsure about anything.
Open a Savings Account
The first step to start saving money is to open a savings account. Capital One and Bethpage Federal Credit Union both have high APY, no minimum opening or maintenance balance, and zero monthly service fees – and so are excellent choices to get you started.
Once you’ve got an account, you need to decide how much to save and regularly save that amount. Even small amounts add up fast over time!
Whether you get money from a part-time job, a side gig online, or from your parent’s – plan to save part of it every time you get paid.
Decide how much you want to save, what for, and by when. Once you’ve decided this you can work out how much you need to put in your savings account every time you get paid.
By getting in the habit now of regularly saving when you are a working adult it will be second nature to save part of your wages.
Don’t Spend Your Savings
Now that you have a savings account it’s important not to use it for everyday spending. Make sure you have a separate account for spending money for things like food, gas, or trips out.
The money in your savings account should only be used for an emergency or for the long-term goals that you are saving for. Sometimes you may be tempted to dip into your savings to make an impulse purchase – don’t do this. Know what your goals are for your savings and only use the money for that.
Create a Budget
Ok, you’re a teenager and probably wondering what’s the point of a budget right now. However, creating and using a budget now is great practice for when you are older and are responsible for all the household bills!
Your budget should include everything you have to pay down to the exact cent and how much you have incoming. Knowing how much money you have left makes it easier to calculate how much you can save.
Throughout the month keep a record of everything you spend. That way you can create an accurate budget next month. If you notice a lot of spending that’s unnecessary, then you could cut this out. This gives you more money to save!
Budgeting, saving, and tracking spending are fantastic habits to build now. This will help you transition to adulthood much easier and give you one less thing to learn!
Speak to Your Parents
Parents or guardians may be able to help you. Speak to them and explain your savings goals. Doing this means they will understand how hard you are working. Depending on their financial situation you could ask them if they will contribute to your savings. Some parents might be willing to match your contribution dollar for dollar!
Earn by Doing Errands
Your parents might not want to just give you money, but many will be happy to let you earn extra. You could offer to do more chores, babysit a sibling, or do some gardening.
You don’t just have to run errands for your parents. Ask your neighbors if they need any jobs doing in exchange for cash. All that extra money can be added to your savings!
Learn to Spend Wisely
As a teenager, you probably don’t have many bills to pay. This means any money you earn can be spent on whatever you want! If you want to save money, then learning how to spend wisely is essential.
Ask friends or siblings if they want to split the cost. For example, you could split the cost of a trip out, a new video game, or a magazine. Anything that you can share you might be able to split the cost with someone.
Another way to spend wisely is by looking for discounts, cashback, and other rewards. Sites like Rakuten, Swagbucks, and Ibotta offer a fantastic range of offers for shopping. You can earn cash back, gift cards, and get discount coupons.
Get a Job
The best way to save money is by earning more! Any allowance you get and money from odd jobs is great but having a regular income will mean you can budget for savings much easier.
You could look for a part-time job in your area to earn some cash. Cleaning, babysitting, and restaurant work are all commonly found part-time jobs for teenagers.
Please note, there are labor laws that apply to how much work a teenager can do. This limits things like how many hours you can work per week and the times of day you are allowed to work. Different rules apply as you get older so make sure your employer doesn’t overwork you!
Start a Side Hustle
Another way to earn is by starting your own side hustle. The internet makes this easier to do than ever before. For example, you could blog, start a YouTube channel, freelance, or be an Instagram influencer.
Think about your skills and how much time you have available. Based on that search for ideas online for side hustles that would be appropriate for you.
Any money you earn means you can build up your savings quicker!
Now that you know how to save money as a teenager you just need to start doing it!
It may be hard at first, especially if your friends are buying lots of nice new things. However, if you stick to your savings goals, then you can buy whatever it is you are saving for. Alternatively, you will have savings to use for college, a car, or to go traveling!
Remember, it’s OK to treat yourself some of the time. You should include some spending money in your budget, but by building the habit of saving now you will be in a great place to start adulthood.