There are tons of reasons why saving money is one of the things you should consider as a teenager. Whether you’re planning to hop on a trip abroad, fund your college, or get your first car, the great thing about saving is helping you to get started.
However, saving money as a teen is never easy. In fact, it’s one of the most difficult decisions you’ll have to make, especially if you have friends who are always buying the latest gadgets in the market or new clothes.
While it’s true that it’s hard to save money as a teen, it’s never impossible. The key to saving money is that it should not be viewed as a shortcut to getting what you want but as a key to being financially stable.
Also, instead of thinking about how to make money fast, focus on what you can do to save the money you just earned. If you concentrate on earning money, all of it will be spent on things you probably don’t need. It’s best to have a balance between earning and spending.
Now, you may be wondering how? If that’s the case, here are the simple money-saving tips for teenagers:
- Open A Savings Account
This is the perfect time to set up your first bank account to help you manage your money effectively. You’ll have a safe place to keep your money for later use with a savings account.
If under the age of 18, you might need a parental guardian to open a bank account. You could also ask your parents or guardians if they have an idea which bank would be ideal for a teenager like you.
On top of that, it doesn’t matter if it’s USD$10 or USD$20. The most important thing is that you learn how to save for your future and what you want to get.
Also, try to look for a bank with no additional monthly charges and a minimum required balance. If you find one, you need to fill in the application forms and submit the required documents.
After that, wait for the bank to call for your debit card or passbook. Depending on your bank, this may take a couple of days or a week.
- Use Your Savings Account
Once you have your savings account, don’t hesitate to use it. Make sure to deposit every money you earn, even if it’s a small amount.
In addition, if you have a stable income from your part-time jobs, it’d be best to have a scheduled deposit per month. For example, if you’re earning USD$500 per month, keep the 25 percent or USD$125 in your savings account. In this way, your savings will be stable as you earn.
Again, the amount you save every month is not important. What’s important is you save no matter how small the amount is.
- Define Your Goals
What do you want to achieve by saving money? What is the purpose of your savings? Do you want to take on a vacation with your family and friends or buy a new car? Having a certain goal in mind will help motivate you and make your journey of saving money a lot easier.
For example, if you want to save at least USD$1000 for a weekend getaway after you graduate, break the amount into smaller and manageable goals. This will make the goal look more attainable.
- Establish A Budget
The hardest part of saving is when you have to think of other things that prevent you from keeping your money. These include paying for utility bills, food, and other basic necessities, especially when living away from your parents to continue your studies.
For this reason, you have to establish a budget plan to help you save and pay for your monthly spending without sacrificing your savings. When formulating a budget, be sure to keep your goals in mind. Set the amount you can save against the amount you have to spend every month.
For example, if you’re earning USD$500 monthly and have living spending of USD$300, save the remaining amount in your bank account. Or you may open another bank account intended for your monthly dues. This way, you can prevent yourself from using your savings.
- Stick To Your Budget
It’s always difficult to maintain your monthly budget when it comes to setting it up, especially if you keep seeing the things you want to have. Unfortunately, many teenagers can’t resist the urge to go beyond their budget.
There’s only one thing that may help you stick to your budget: keeping your goals in mind. By doing so, you’ll be discouraged from purchasing the things that you don’t even need.
- Supercharge Your Savings
Supercharging your savings is an effective way to boost your savings while keeping the things you want.
Here are some tried-and-tested tips that may help you:
- Always consider the cheaper alternatives when spending. For example, you may consider making your own lunch instead of buying lunch outside your school.
- Try to look for sideline jobs that may help you earn more during your free time, such as dog walking, babysitting, or lawn mowing. You may ask your friends and neighbors if they need help.
- Always go local. For example, you may consider visiting your local clothing brands for new and fashionable wear instead of high-end boutiques.
With these tips, you’ll be able to save more and attain your goals faster than you think.
- Sell Unwanted Stuff
First, take a look at your belongings. Now, ask yourself, how many of these do you actually use every day? When was the last time you used them? If you have plenty of unwanted stuff at home, the best thing you need to do is eliminate them.
However, instead of putting them in your trash bins, turn them into cash by selling them. You may ask your friends and neighbors if they have something they want. In addition, you may start online selling using an eCommerce platform to widen your customer range.
Saving money as a teenager can be challenging and boring most of the time. But you have to stay patient along the process, or you won’t be able to reach your goals and buy the stuff you want.
If you’re having difficulty saving for your future wants and needs, you may consider some of the most effective tips presented above. With these simple yet effective money-saving tips, you’ll be able to plan better for your future.