6 Easy Ways to Save Money as a Teenager

Did you know that saving money as a teenager will be helpful a few years down the road? If not, then you may not know that if you start saving money now as a teen you’ll be more financially independent then if you start later in life. If you’re curious on how to get a jumpstart and save money now keep reading below. 

Why Should You Save Money as a Teenager?

When you’re young is when it’s a great time to start saving money. When you begin to save money in your teenage years you will learn the healthy habits of saving and how it can help you in the long run.

Saving as a teenager will also help you learn and get a better idea of finical security. This is important because there are many adults in today’s world that still don’t understand what finical security is and they do suffer from it.

In the long run, saving now will help you to be independent of your parents in the future and help you to get bigger purchases such as a car or a new phone. Lastly, saving in this stage of your life will help you learn to set goals and achieve them.

1. Open a Savings Account

The first step to saving money is to have somewhere to put it. This is why you should open a savings account along with your checking account to begin the habit of saving.

To open a savings account all you have to do is walk into your bank. If you’re unsure of what bank to go with you can consult parents or guardians within your family and then join the same bank they are members of. It’s good to keep in mind that you can switch banks at any time so you won’t be stuck with that finical institution for the rest of your life. 

After selecting a bank all you need to do is walk in and sit down with a teller. They will help you choose the best accounts for your needs. If you are under 18 you will need the signature of a parent or guardian. 

2. Start to Budget Your Money

One great way to save money as a teenager is to budget. If you get a paycheck every week or two weeks you should sit down and divide certain portions of you pay to certain areas.

For example if you make 300 dollars every week you can put 100 dollars in your savings and then have 200 dollars in spending money. Budgeting can be helpful also when you need to set money aside for a car payment or phone bill.

If you begin to budget your money now you will pay better attention to your spending habits. This will help to make you more financially conscience and help you to save in the long run. 

3. Track What You Spend

This may go hand-in-hand with your budgeting but tracking what money goes where will help you to be more aware of your spending habits also. If you’re wondering where all your hard-earned money is disappearing to, tracking will be a great way to look at the bigger picture.

If you feel as if you have no money all the time see how much you’re putting into food. Maybe you’re eating out too much and need to buy meals to make at home. If food isn’t the issue then maybe you’re spending too much on entertainment such as movies or video games.

4. Use Discounts Whenever You Can

If you’re going to spend money on something you’ve been wanting or you need to spend money on a car repair, do it wisely. When shopping around for a treat or necessity make sure to shop around and to compare prices.

When taking the time to shop around you may find some discounts that make option B more affordable than option A. When you’re about to make a purchase ask places about student discounts. You will be surprised at how many places offer at least 10 percent off to students. 

5. Establish Your Credit History Now

If you’re 18 then it’s a good time to start thinking about establishing that credit history now to help you later down the road. To begin your credit history you should submit your first application for a credit card.

This credit card isn’t going to be that amazing. Your first one will have high interest and low credit line but that’s okay. You shouldn’t be maxing this card out every month but buying one or two small things and paying it off to help build up your credit score.  

6. Use Apps If You Need To

If you find that keeping track of your money or budget is near impossible there’s nothing wrong with using an app to help. There are many money-saving and budgeting apps that can assist you and even help you to get a better gist of your goals. Apps will also help you see the bigger picture and can even help you to project how much money you can save in a year if you stick to your plan. 

Now You Know How to Save Money as a Teenager

At this stage of your life saving money may seem to be unnecessary, but it will pay off in the years to come. Saving now will teach you good habits and help you to be independent in the future.

To help you get into these habits we have told you great ways to start saving from opening a savings account to using an app to track your money. We look forward to seeing your savings account overflow. For more personal finance tips and information be sure to check out the rest of our website here