teenager money saving

How To Save Money As A Teenager

The teenage age comes with a lot of wants, no doubt. It is not abnormal to be a little bit above the notch when being materialistic at this stage.

It is recommended that you save as a teenager, so you meet with the ups and down in finance, learn, unlearn, and relearn certain spending skills early in life. By doing this, you gain experience in finance even before going into the workforce later in life.

As a teenager, regular allowance might not be enough to meet up with your demands. Taken that your allowance is enough to get you what you want, the problem with personal allowance is that they are sometimes fixed for personal upkeep.

This makes it difficult to do things you want without compromising on your basic needs. This means there is a need for alternative sources to meet up other demands

You can get yourself whatever you wish to get; be it video games, bags, or clothes by setting up a saving plan.

Suppose you are finding it difficult to save money as a teenager, the following tips might help you start up on saving early in life.

1. Get a piggy bank

This is the easiest way to save money within the comfort of your home. Saving money using a piggy-bank requires next to nothing to set up.

All you need for your piggy bank account is your Piggy Bank! And of course, your money. If you cannot get an actual piggy bank, then there is no cause to worry.

You could use pretty much anything as a piggy bank. You could use a container with led or any sealed box; all you have to do is create a single slit on these materials wide enough to hold only money.

You can do this by opening up a slot on the top of the boxes or containers.

The idea here is to keep money in the piggy bank easily while making money withdrawal a bit difficult. What this does is; it trains you to be financially disciplined since the boxes or containers would only have to be broken for withdrawal.

With a piggy bank, you can save a considerable amount of money conveniently. After the set amount is reached, you can make withdrawals by breaking open your piggy bank.

2. Open up a savings account

Open a savings account in a bank with minimum start-up deposits or get a bank with no start-up deposits. Saving money in the bank is an effective way to save money.

For many reasons, keeping money in a bank is an excellent way to save money with little risk.

With a savings account, you do not have to fear taking money from your piggy bank indiscriminately. Keeping money in a savings account is a stricter alternative to keeping money.

You can save up money in bits with a savings account. You could begin with saving up a small percentage of your allowance or tips you get at your workplace or side hustles.

Always set a target balance. If you are looking to purchase with your savings, say a phone, then you want to make its purchase price is your target balance to withdraw. 

However, it is best you have a little bit above the target balance. This could be used to meet miscellaneous expenses.

The downside to saving money with a bank most times is the initial start-up deposit. Some banks take up as much as $100 as a deposit fee.

This is why I recommend you save money with banks that request little to no start-up deposits.

Another problem could be age limitations. Some banks do not open accounts to customers below the age of eighteen, while others would only open to under-18 years old if a guardian is provided.

TIP! Take your money further, faster. AXOS Bank is an online-only bank offering higher yield savings than traditional banks, in fact, 8x the national average APY. No minimum balance requirements. The opening deposit is $250.

3. Get a job

You could do yourself a whole lot of good by getting yourself a job during the holidays. The holiday period presents teens with lots of job opportunities.

If you are looking to channel your productivity into making some cool cash, then you could take up one of those “teen jobs.”

Before seeking out a job, know your local laws governing age and employment. Make sure you are fit to take up a job by all laws in your community.

If all criteria are met, a good place to start up is a family-owned business. If your father owns a coffee shop, you can offer to work as an attendant at a fixed hourly rate.

You could opt to work in a coffee shop, a restaurant, a cafe or a bookstore. Getting a job that pays you well might be the most rewarding way to get an income and start saving.

Apart from getting a job to start your journey on saving some cash, It gives you a sense of self-respect and financial responsibilities. An added advantage of getting a job is the experience you acquire.

You would be surprised what a summer job can do your resume when seeking a bigger job with more pay. Getting a job that interests you is a win-win because you get to do what you love while saving money and also get paid for it!!

TIP! Save money on your online purchases. MyPoints members get up to 40% back with every purchase at 2,000 top retailers like Walmart, Best Buy, Home Depot & Amazon. Plus you get a $10 gift card when you sign up. For UK readers, we recommend TopCashback — the highest paying cashback site in Britain.

4. Keep money with a trusted friend

If you are afraid you would spend up the money you are trying to save; you can keep the money with a trustworthy friend. The idea of keeping money with a friend is that you do not have access to the money freely. You would only collect the money when a set target is reached.

So if you are going to keep money with a friend, you must be disciplined about it.

When you keep money with a friend, it is best you tell them what you intend to purchase. You also tell them not to hand you the money unless the purchase price is reached.

This works best when saving short-term, for example, when you want to purchase a not-so-costly phone or video game.

Keeping money with a friend does not require as much as a piggy bank or sealed container. All you need is a trusted friend!

5. Be conscious about your spending

It may be easy to come by money, especially if the said money is your allowance, but it is even easier to spend it up. While spending money, keep track of how much you have spent and how much you have left.

If you intend to purchase anything from your money, you could have a fixed spending budget to match your purchase money. You could own a record book where you keep all your transactions, the amount you spend, and how you spent it.

Make a list of things you want to purchase, their prices, the money you have, and the money remaining to complete the purchase price.

This should help you spend wisely and hopefully help you cover all your purchases or most of them. If you find a record book a bit too old for your style, you can try out some of the mobile apps available.

TIP! Join Honey, the money-saving app. Honey automatically finds the best coupon codes while you shop online. On average, their 17 million users save $115 on their online shopping every year. Best of all, it’s free.

6. Learn to split costs as you spend

Learn to spend money prudently. If you are to spend money, be sure to do it wisely.  You are not obligated to cover for every other person’s expenses. Not suggesting you should be stingy. But be sure you are not lavish while being generous.

If you are out with friends at a cinema or restaurant, it would be wise to have everyone pay for their expenses. However, you could step in to help a friend if he clearly can’t meet his expenses.

If you are financing something of shared interest either with family or friends, it is wiser to have the financing equally shared. This allows you to have excess money to save up in your piggy bank or bank account. Minimize cost as much as you can by sharing costs with people.

7. Ask for student discounts

You do not have to be on a scholarship scheme to enjoy financial cuts as a student. A lot of retailers give student discounts to their customers. If you are purchasing an item, ask for the possibility of getting a student discount.

You would be surprised how much cut you would be getting by utilizing your student discount.

The merit of purchasing on discount is that it allows you to save money. The excess money you keep can be saved in bits to purchase bigger things.

Although not all stores publicly announce their discount, you could politely ask to be sure before purchase.

8. Run simple errands

If you like your money hard-earned, then you can run simple errands for money. You do not have to take up really strenuous tasks to get money. A simple errand like helping to purchase groceries in the mall might suffice.

You could also help to babysit a neighbors’ child at a fixed rate per hour.

Running errands does not have to go as far as your neighbor’s house in most cases. You could simply add a list of work to your routine chores, however different from your routine chores, you charge for your services in this case.

Be realistic when seeking to run errands at home. Do not demand too much for the errands you run at home; also, be sure that you are polite when discussing this with your parents. Most parents will understand this and would be eager to help.

Make sure your price demands match your services; this makes you very hirable.

When running errands, run simpler errands, so you do not overwork yourself. You also need time for your personal growth, and of course, you need time to spend the hard-earned money!

TIP! Check out FlexJobs, they list the best remote and flexible jobs part-time to full-time, entry-level to executive, in 50+ categories.

9. Ask from your parents

While this might seem pretty much like still collecting allowance, remember that the idea of saving up money is not only to purchase things you want but also, to learn financial responsibility.

So can I collect money from my parents and still assume that I am saving? Yes, you sure can. If the financial discipline is not lost, then the whole idea of saving is still met.

You simply start up by telling your parents about your intention to save and ask for their support. You could ask them to give you a few bucks to save up on a routine.

If you ask politely, your parents would be sure to oblige. The money obtained here is different from your allowance, so you have your whole allowance to yourself if you want. The money you get from your parents can then be saved up in your bank account or piggy bank to purchase other things.

TIP! You could save on interest when you refinance a student loan, check out Earnest. They also offer private student loans if you’re looking to get funded for college.

10. Spend wisely

There’s no magic involved, if you are going to save up money, you’ve got to be prudent with your spending. Prioritize your essential purchase over other unnecessary things.

Although it is tempting to spend money on everything you desire, you will not be doing yourself a lot of good if you give in to your whims to buy just anything.

Spending your money wisely is not without reward; you would be surprised how much you could save up by staying within a strict budget. The excess money you save can be used to purchase more essential things.

Final thoughts

Saving money as a teenager is not easy; it would be unfair to say otherwise. You would be easily tempted by your peers, spending money freely, but you have to make a conscious decision to be disciplined.

Although, it is easier said than done, making a conviction to keep the money until it reaches its target balance might be an excellent way to start-up.

You could also tell a few friends or family of your intention to save. This does two things: it gives you a sense of responsibility since you wouldn’t want to disappoint your friends or family by withdrawing your money before your target balance is reached.

It also provides you with people that encourage you to stay with your conviction when you get tempted. Saving as a teenager teaches you financial responsibility and discipline, which are essential skills to attain an excellent financial status later in life.

We explain how you can make money, save money and grow money.

Make money: learn how to build wealth and how to earn money from the internet.

Save money: learn how to save money and how to make budget plans.

Grow money: learn how to invest and trade.

Please note that under no circumstances should any information from this blog be used as replacement for professional financial advice.

More Stories
smart trader
3 Advanced Forex Trading Strategies Used By The Pros