How to Save Money as a Teenager
Are you looking for ways to save money as a teenager for the purpose of a holiday with friends or to buy a certain item? Saving money as a teenager does not have to be as challenging as most people think. Whether you are working or not, you can utilise several ways to save money and hit that set target. There are many benefits of saving money as a teenager and the best part of it is that you develop good financial habits that will have a significant impact on your future.
This article is a money-saving guide aimed to help teenagers with money-saving tips.
Money-saving tips for teenagers
The following money-saving tips will help you accumulate your funds and hit your set target by utilising available resources without much hassle.
• Make a budget.
The first step is to budget the money you aim to save. Establish all your sources of income and the amount you get weekly or monthly. Identify your expenses and allocate enough money to cater to them – identify the essentials, the negotiable and those you can do without.
Budget the money you want to save daily, weekly or monthly, set it aside and watch it grow. Avoid buying items above and beyond the amount you have allocated for spending to achieve the saving goal easily. There are several budgeting apps available and they will help you do this efficiently and effectively.
• Start a savings account.
Open a savings account to help you store your money securely, regardless of the amount you are saving, whether too little or too much. A savings account limits your access to the funds available and hence you would not be tempted to withdraw immaturely.
Determine the amount you aim to have by the end of your saving period. Set daily, weekly or monthly targets to achieve the saving goal and stick to the set targets. Achieving set targets acts as a motivation to saving huge amounts in the future.
The good thing about keeping your money in a savings account is that it will earn you a compound interest and your money will be always safe from theft.
• Keep track of your purchases.
The easiest way to save is to track your spending by recording all your purchases, including the totals. With this, you will be able to track your expenses and know how to minimise your spending.
Record each purchase and attach its cost and then review to identify if it was essential or not. This will help you to avoid purchasing such items next time. Separate the amount you aim to save from that you will be spending, as this makes it easier to avoid spending money you were supposed to save.
If it is hard for you to track your expenses, get a debit card from your bank; this helps you do so efficiently. You can also download an app to record all your purchases.
• Shop in sales
There are always several items on sale, when items you want go on sale go ahead and purchase them. Discounts are a great way to help you save some money to transfer to your savings account.
• Use your student ID
If you are a Student search for student discounts and utilise them to save some money. Many stores offer a student discount and you should always inquire if there are some before paying. Getting all discounts available helps you save up quite a good amount of money.
• Get a job
Get a job at college or during the summer and save the amount you earn. Summer jobs help you explore your passion and they are an excellent opportunity to gain experience. They are also a perfect opportunity to keep you from engaging in irresponsible activities and avoiding bad company.
Working helps you spend your money more critically and will influence your future financial discipline. You can work at a local restaurant, do babysitting, pet sitting, mowing lawns and tutoring children.
• Do Chores
Rather than always asking your parents to give you money, help out in some house chores and get paid and save the money you get paid for doing household chores. You can do simple tasks such as folding clothes, cleaning the house or babysitting your siblings.
How much should a teenager save?
The amount a teenager should save varies depending on their saving goal and their income. Generally, the best way is to save 10% of their income and have at least enough money to cater for three months’ expenses in case of an emergency.
If you are working for long hours and getting enough money, you should at least save £20 weekly, a third of a weekly wage for people earning a minimum amount.
Saving money for teenagers can be challenging, especially if you are surrounded by friends who always spend on new clothes and weekend trips. Having a plan to earn extra income will come a long way to help you save and achieve your saving goal. Minimise your spending and always look out for discounts.