Saving money as a teenager is difficult, even more so when your peers are out purchasing new clothing and taking weekend vacations. However, it is not impossible. Teens may save in the following ways.
This essay is part of a series aimed at educating adolescents on basic personal finance principles. At money Under 30, we think it is never too early to begin developing financial responsibility; we hope this series serves as a solid starting point.
Whether it’s a new iPhone, a vacation you’ve been eyeing, or a larger object such as purchasing your first vehicle, you have enormous ambitions as a teenager. While your parents may assist you in acquiring some of these items along the road, saving money for these objectives makes them more gratifying to accomplish.
Teens may save in the following ways:
To begin, open a savings account.
As young YouTubers like Emily Wass can attest, you may feel confused or uninspired to save money if you are not earning much. However, whether it is $10 or $100, it may assist.
Set savings goals for each day, week, or month and stick to them. A savings calculator will estimate the time required to achieve your goal.
Keep your spending money separate from your savings.
Though you’ve saved the money you’ve earned in a savings account, you may be tempted to use it if you’re out of cash, correct? No—refrain from touching it!
Your funds are intended for necessities and emergencies, not for more routine expenditures such as food. The prudent course of action is to have a checking (or “transaction account”) and a direct deposit account that is both readily accessible. You may always open a student checking account and deposit part of your money there if you don’t want to carry around too much cash.
In this manner, your objectives will not conflict. Savings accounts are designed for the long term, while checking accounts are designed to meet immediate requirements.
3. Maintain a record of your purchases
You may save money more quickly if you keep track of your purchases in a journal. This way, you’ll have a record of your expenditures and will know whether you’ve been overspending. Keep all your receipts and track your expenses.
Always date your entries and categorize your money, i.e., income and expenditures. If you have cash that you cannot monitor for any reason, make a note of it and even write brief evaluations of the items you purchased. Once you see some of the figures in addition to the things you bought, you’ll understand how ridiculous that was. Whether it was a terrible movie you saw or a party that bore you to death, you’re more inclined to be frugal and choosy with your expenditures after that.
If you’re not a fan of the old-fashioned way of writing things down, you may check into cashback applications that reward you for your purchases. For example, suppose you’ve ever shopped at a grocery store or convenience store. In that case, you can use the Fetch Rewards app to snap a picture of your receipt and receive rewards for purchasing popular brands like Pepsi and Hershey’s. Another excellent method to keep track of your expenditures is to use a pre-paid debit card. Young people can use their current Visa debit card to make purchases, set savings goals, and develop good financial habits.
If you have a debit or credit card, another excellent alternative is Dosh. Connect your card, and Dosh will begin monitoring your expenditure immediately. You’ll get cash back when you purchase specific goods, as well as reimbursements if the price of an item you are buying decreases after you purchase it. Once you’ve earned $25, you may withdraw the money by bank transfer, PayPal, or Venmo.
You may also use some of the capabilities available via your bank’s online services. For example, numerous banks can classify your expenditure and provide it in simple-to-read charts and graphs. This enables you to monitor your bank account in real-time and get a better understanding of your expenditures.
I would warn you, though, that being less involved (pun intended) in your money means you are less linked to it—and therefore may spend more. By keeping track of receipts and manually recording purchases, you will better understand where your money is going and will become more frugal with your spending.
Inquire of your parents
Yes, the sigh you’re making as you consider my idea can be heard across the room. However, it is not a terrible idea to seek assistance from your parents while attempting to save a few dollars.
You may request that your parents contribute to your weekly or monthly savings by contributing to your account. For example, if you set up $25 each week for a month and demonstrate to your parents that you have met your goal, you may ask for a $100 contribution at month’s end. Once you’ve shown your commitment to saving money, they’ll contact out and assist you. It is not impolite to inquire.
Carry out chores
If you’re too proud to ask your parents for assistance and want to convert something you dislike into a money generator, offer to do more household tasks in exchange for additional money. Fold laundry, wash clothing, and clean—all the things you despise doing. You may even hire someone to babysit your younger sibling or sister on an hourly basis.
Additionally, you may offer to purchase groceries for your neighbors and assist them around their homes for a charge, as well as for trim their lawns or shovel their snow. Whenever possible, convert tasks into hundreds of dollars.
Make use of your student identification number.
Another possibility you may not have considered is that your student ID may be so much more than a card with an unflattering photograph of yourself. According to Seventh Magazine, you can save up to 10% on urban clothing, Charlotte, and other popular stores.
Taking advantage of all available discounts simplifies saving and allows you to keep more of what you earn until you need it. Additionally, it would be prudent to inquire about student discounts and specials everywhere you go. While some companies may not promote their student discounts publicly, they will gladly offer them upon request.
When you spend, this does not always imply that you must spend alone. Consider splitting expenses with your friends or siblings whenever possible, whether it’s for magazines, vacations, or books. Profit from whatever common interests you have with others by dividing the items you want.
Additionally, attempt to gather as many coupons and gift cards as possible. If the gift cards you get are for items you are not interested in purchasing, you may resell them. Gift markets such as Raise will gladly accept them for a charge.
Acquire a summer job
If you’re old enough, obtaining a summer job can enable you to save some additional money for emergencies.
Why not earn money over your summer vacation if you have no effective plans? First, it prevents you from making poor choices with whatever allowance or a negligible amount of money you may have. Additionally, it enables you to continue refilling your account(s) until it’s time to return to the books.
Summer employment is also a great way to acquire experience. In addition, they may assist you in obtaining better-paying employment in the future.
Summary of how to save money as a teenager
Saving money as a teenager is difficult, much more so if you haven’t acquired the skills necessary to succeed in the working world. It’s tough when your pals are out shopping for new clothing and on weekend getaways. However, who said you required a lot of experience to attract riches?
Improvisation is beneficial, as is maintaining separate records of your spending. Additionally, there are advantages to being a student that you can use, such as applications that make it easier to access your accounts. You can even convert your hobbies into income generators.
Doesn’t it seem like fun? Begin investing for your future now, while your future is still a long way off!