You’ve come to the right place to learn how to save money for teens who want to be ahead of the game as you enter your adulthood and life becomes “REAL”.
Teenagers nowadays are very active and outgoing that sometimes, saving money, can be very difficult for them. Since they have a lot going on in their lives, they hardly hold on to cash and doesn’t consider saving much.
A study shows that teenagers are not much of a smart spender as they tend to buy all the stuff they want and need. However, life can be unpredictable sometimes.
You will never know when emergencies arise and it is very important that you have a spare amount of money to use in the future.
Securing an emergency fund or any type of saving at a young age is highly recommended as it puts you ahead for the rest of your life.
To help teenagers save up some money, here are tips to get them started:
9 Money Saving Tips For Teens
1. How to Save Your Money as a Teenager By Tracking Your Spending
It is advisable to keep a notebook of expenses to see patterns of spending. By doing this, you can check your expenses done over some time and help you determine which ones take the most of it. Then you can adjust some items on the list in order to save money.
For example, if you see on your list that you buy sandwiches at $8 daily, it is now time to switch to homemade sandwiches that can cost $5 only. Now you can save $3 with that!
2. Save Before Spending
Whatever amount you are earning (if there is), avoid rushing to spend it at shopping centers. Instead, put it directly to your regular savings.
For example, you are earning $50 per week, and have expenses such as lunch for $25. Once you get paid, automatically set aside a certain amount of $15 and keep it as your savings.
You should do this consistently so it becomes a regular habit. Saving money as a habit is a good way to continue and be consistent with it. If your saving strategy becomes a habit, it will always be with you.
3. Get Educated
There are studies showing that the more you are educated financially, the less you are tied up for decades of debts and fees.There are free and awesome websites on the internet that can advise you on financial matters.
You can also read blogs about financial wellness, tips on saving and more. Aside from the articles on the internet, there are books about finance that will help you where to start.
4. Get Support From Parents
If you are serious about saving money, tell this to your parents or family in order to get support and advice from them. Some parents would like to add extra bucks to your savings.
For example, you are saving around $50 a month, some parents would add $30 to it to get you motivated and consistent on your savings.
At the end of the day, your savings can be of good help to your parents if you happen to use this on college fund or tuitions.
5. Power of Time
Some teenagers who save, whether a small amount or big ones, understand the power of time…
For example, if you have $500 on a summer job pay, you can invest it on an annual rate of 5% so it will give you $25 on top of your investment.
If you invest your $500 for 50 years, then you will earn $1250 and if you invest it for only 30 years, your earning will only be $750. So it is better to start early so you can have more time and more investment. As what they always say, “time is gold”.
6. Smart College Decisions
When you are about to enter college, it is important to choose the right way. Some teens choose to attend college for few years then work full time to pay for it.
Some may attend a local college for at least two years then transfer to an expensive school through grants and scholarship. Another smart decision is to choose a major that will help you get paid more.
Select a field that is paying well and is possible, avoid loans in exchange for degrees because they are poor financial decisions. You wouldn’t want to have a degree and have a job that can pay your debt for the rest of your life.
7. How to Save Money Fast as a Teenager By Having Good Credit History
When leaving home, some parents would help you start a credit history. They would hand credit cards to you for college and they would tell you to use it responsibly. This sometimes causes disaster.
So before you swipe that shiny cards out there, think twice if the ones you are buying are necessities. Parents can monitor your credit history so swipe responsibly!
8. Student ID is Powerful
Take advantage of your student ID card. Most products and services offer discounts when you use your ID such as tickets, sporting events, groceries, restaurants, train, travel fees.
Magazine subscription, hotels, and a lot more. When you buy anything, always ask if there a discount for students.
9. Escape FOMO
FOMO or “Fear Of Missing Out” is something teenagers would want to address. They always think that everyone should have more fun, especially during teenage years.
However, it is important to think of fun not only in your teenage years but for the years to come. So, manage all those FOMO activities. Do not give everything up now for what you want to enjoy now.
What is more, fun, to spend your summer job earnings for a spring break, or be debt free during graduation? Think always of the long-term effects of your action.
When you ask older people what their biggest financial regrets are, you’ll be amazed that most of their answers are the same.
They will tell you that: “They wished they had started saving money at a very young age. Because as you get older, it is getting more difficult to do so”.
So start saving now and don’t have the same regrets they did some time ago. Remember, time is an important element.