Most teenagers don’t see saving money as a priority. So, if you’re looking for money saving tips for teens, congratulations! You’re going to be one step ahead of your peers.
No matter what inspired you to turn your thoughts towards savings, as long as you have a goal, you are ready to embark on this journey. A few tips, tricks, and nudges in the right direction are all you need to begin growing your pile of money.
The best part about it is that you’ll do more than just saving. You’ll also develop an extremely useful skill that some 40-year-olds still can’t master. That skill is money management.
So, are you ready to hear what saving money is all about?
Let’s dive right into the essential money saving tips for teens.
Tip #1: Set Your “Piggy Bank”
First things first, you need to decide where you’ll keep your savings. Since a piggy bank is a little outdated, the solution lies in a savings account.
“Can I have a savings account if I’m under 18?” – some of you will ask. The answer is YES!
You will need to let your parents tag along and be a part of the process. Their help will also be useful when choosing the bank. They can have some good suggestions on which bank is the best for you.
However, if you want to do the research on your own, here are a few things that you should keep in mind:
- Look for a bank that doesn’t have a minimum balance requirement (that is a minimum amount of money that you must keep in the account)
- Look for a bank without a monthly fee
- Aim for a bank with the highest interest rate
- Pay attention to the paperwork you and the parent will need to collect and bring
The savings account will diminish the temptation of reducing your pile with an “I’ll take just a little” excuse. It will also reward you for your diligence with an interest that will grow your savings. Sounds good, right?
Tip #2: Earn Some to Save Some
Why rely on a summer job when you can make money (and save some) all year long?
There are lots of teen-suitable jobs that you can fit into your schedule. What’s more, you will be able to keep your pocket money all to yourself, while saving what you earn.
This money saving tip for teens is probably something you’ll expect. But I’ll do more than tell you to get movin’. I’ll share some job ideas that can show you what type of jobs you can be chasing and how to find them.
For the typical part-time jobs, you can check out these websites:
- Jobs4Teens
- StudentJob
- YouthEmployment
- Care.com (babysitting jobs across the UK)
- KoruKids (babysitting jobs in London)
But if you want to take a non-traditional route, consider the following side-gigs:
- Selling your crafts on Etsy
- Website testing
- Transcription (transcribing audio, translation, subtitles; check out GoTranscript)
- Selling brand’s products for commission (check out PerfectlyPosh)
Tip #3: Limit Your Wants with a Budget
Knowing your boundaries is one of the essentials when it comes to money saving tips for teens. To set those boundaries, you should define your budget.
How much can you spend a month to put a certain amount of money aside?
Roughly calculate your monthly expenses. Be clear about what you truly need and what you just want.
When you have that figured out, give yourself a goal to save the rest. You can also reward yourself once a month with a splurge amount.
This may seem like maths homework, but it’s more than that. It’s the foundation for your saving money mission.
The sweet taste of regular income can make you spend more than needed. That is, if you don’t have a set budget to remind you of your goal. Let the budget be your armour against money spending cravings.
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Tip #4: Spend Smartly with Discount Cards
When you do have to or want to spend money, you should do it smartly. Why spend more when there are ways to spend less?
There are three words that will summarise what I’m talking about right now – student discount cards.
Yes, there are cards that will get you discounts. Yes, you can get your hands on them.
Student discount cards can help you lessen your costs for clothing, tickets, food, technology, and more. They can be the perfect addition to your mission.
There are various discount cards, but I present to you some popular options:
Tip #5 or The Final Money Saving Tip for Teens: Keep Your Eyes on the Prize
Every tip we’ve covered will be in vain if you don’t keep up with this one – focus and consistency.
You won’t see any results if you start saving and then fall off the tracks a month later. If you repeatedly backtrack your money-saving journey, there won’t be any results to motivate you.
For that reason, ask yourself the following: Am I ready to do this?
Be aware that you will need to sacrifice your time and put effort into it. There’s no way around it. That’s why you need to be clear about your willingness to go all in and ace this money saving task.
What can help you stay focused, motivated, and consistent is a reminder of your goal. Put up a picture of what you’re saving for in your room. It can be the car of your dreams, a university you want to go to, or a big trip you have planned out when you turn 18.
So, whenever you feel like giving up, look at that picture, and you’ll remember why saving is the right choice.
Wrapping Up
Will these tips be life-changing information? They can be if you embrace them, live by them, and remind yourself of them from time to time.
I won’t lie to you. Saving money won’t always be easy. But you know what? It is worth it.
That feeling when you can get what you’ve been wishing for and pay it with your own money is indescribable. No piece of clothing or video game can match the confidence and self-satisfaction you get from watching your savings grow and knowing that you’ve done it all by yourself.