Saving as a teenager: 15 tips to get you started
Being a teenager is great, from having lower expenses to more free time, it’s also a great time of life to save.
Saving is a great habit, but it takes time and effort to form. Using this time in your life to learn the habit is a great idea, and this article will help you do it.
15 tips for starting saving as a teenager
1. Create a budget
Even as a young person you should have a budget. Track every expense that you do have, map your income, and live within your means.
2. Be aware of your allowance
You can use your allowance as part of budgeted income, to save for things, to manage your money, and to develop the habit of healthily managing money.
3. Control yourself, and your spending
4. Live with your parents for as long as you can
A lot of teenagers are in a rush to get out of the house, wanting the “freedom” of living on their own. Don’t be so hasty. You have very few expenses, you have time to plan your future, and you’ll have your parents right there to advise you any time you need it.
5. Stay away from the store
Going to hang out at the mall is always a recipe for impulse buying and shopping sprees. Avoid them if you want to hang on to your money. Hang out at your house instead, invite friends over for a movie night, or re-organize your wardrobe to remind yourself of what you have.
6. Bring your lunch from home. Always.
Bringing your lunch from home will be cheaper and healthier than anything that you can buy, and you’ll save every single time you do it. Leave your savings in the bank, where they belong.
7. Buy used when possible
Buying used instead of buying new is a great way to save money. Secondhand items are often in great condition, still having plenty of life in them, but come at a fraction of the cost that new items can cost.
8. Understand wants, needs, and the difference between them
There are things that you want, and there are things that you need, and there’s a huge difference between the two. When you need something, it’s an unavoidable expense, but there are very few needs in your life right now. When you want something, you can avoid it as an expense if you need to for the sake of your budget.
9. Learn about finances as much as you can
Now is the time in your life that you have the time to do things like learning, and finances is something most people wish they knew more about. Use this time in your life to learn more about finances, take out a library book.
10. Avoid credit cards for now
There’s no rush on credit cards, you don’t have to get one now, so don’t. Get stability before you look to threaten it by using more than just your income.
11. Don’t be embarrassed about being sensible.
Don’t let your friends make you feel ashamed for spending time reading instead of gaming. Know that you’re working to value money as a teenager will have long term positive effects on your financial success.
12. Work to pad your income
Your allowance can provide some income, but not always enough for the savings goals that you have. This is where part time jobs can come in. Babysitting, car washing, tutoring, shovelling, the options are endless, and can really add up over time.
13. See an investment adviser about potential investments
Now is a great time to start THINKING about investing. Don’t jump in too fast or too hard, or you won’t be able to actually succeed at this. Go to a financial adviser and start talking about potentially safe ways to invest your hard earned money.
14. Use scholarships to pay for your education
Scholarships are a great way to fund your education, as they’re free money off of your tuition. Look into them from a young age to tailor your application for better chances of success.
15. Join discount clubs like Money Savvy Mums that make it easier to learn about finances and get involved in your own success.