Whether you are 16, 30, 50, or older, saving money involves sacrifice, commitment, and pain. Growing up as a teen can make you want to buy many things, but you might not have enough money.
This can be tough, but try to find ways to save money! Trying hard, being patient, and careful planning will help build the habit of saving money.
Following a healthy financial habit of saving money will help you stay stable financially and mentally. More teens are joining various work forms every year and are educating themselves financially.
Saving money as a teen will teach you independence, awareness of costs and expenses, and the ability to manage unexpected expenses. Learning to save money now will help you enjoy your future.
If you don’t know how to save money, here are nine ways to help you; start now!
How to Save Money as a Teenager – 9 Ways to Save
Finding intelligent ways to save money as a teen can help you stay at peace in adulthood. It may not be accessible in the beginning, but give it a try and start slow. Here are 9 methods for saving money as a teenager.
Split Spending and Saving
When you get money, separate it for spending and saving. Select the amount you want to spend and subtract any savings you have already kept aside. Based on the things you want to buy, divide the remaining money you need by the number of weeks till your purchase. This is how you need to set aside money every week to meet your goal. If you find it hard, give yourself more time to save and look for ways to earn extra or ask your parents for help.
1. Open a Savings Account
The first step to saving money is to open an account, a savings account. The bank will help to secure your money and keep track of your purchases.
Do your research and look for options that come with high interest rates. You will need an ID to open your account. You can use your school ID if you don’t have an official one.
Some places will want you to be 18 and above to open an account, or you have a parent or a guardian. As you open an account, you might have to deposit $12.00-$100.00 as an initial amount.
2. Unsubscribe From Alerts and Offers
Online streaming platforms and subscriptions are convenient and fun, but are you using every bit of it? You might be paying for things you don’t use or want.
Look out for subscriptions that are not used and cancel them. Sign up for educational subscriptions, help with finances, news, history, engaging podcasts, and learn daily.
Most subscriptions’ conditions, costs, and terms are updated and revised frequently. Cutting down on alerts and offers can help you save money.
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3. Try Cash Stuffing
Cash stuffing or envelope budgeting is a money-saving method. It helps create a very simple budget every month.
Make a list of things you want and set aside a particular budget for them. Take an envelope for each of these expenses and categorize them.
Write small labels like clothes, dining out, and games on each of these envelopes and keep the money inside them. The money kept aside can be for your monthly or weekly expenses.
4. Avoid Unnecessary Purchases
Expenses are inevitable, but spending on unnecessary items can cause you to overspend. Cut down on these expenses by creating a budget, especially when shopping.
Have a list of the things you need and stick to it. Plan meals well in advance and get only those essentials.
If you want to buy an appliance, save money from now onwards. Suppose you stay near your school, cycle, or use the public transport service to commute.
5. Make Use of Student ID
A student identification card is issued to each student in institutions. This is part of the enrollment program and the student’s identity on campus.
The ID card can be used to access on- and off-campus facilities and resources like libraries and computer labs and to pay for any on-campus activities like printing and laundry.
It can also catch the campus bus and get discounts on campus gym membership. Stay fit, save money, and enjoy using your ID card responsibly.
Off-campus, use your card to get deals, discounts, offers, and benefits available to students. Carry your ID card and save money on clothes, food, and other activities.
6. Set a Savings Goal
Always have a savings goal. Know why you want to save money. How can you save money? Let your savings be purposeful.
Set aside one-third of your money into your savings as soon as you get it and spend the remaining two-thirds.
You must have a budget and an expense amount to maintain a savings goal. Try the 52-weekend money challenge. This is a simple and easy way to save money.
Save $1 during the first week of the year, $2 for the second week, $3 for the third week, and so on; by the end of the year, you will have saved $1,300. Hurrah!
7. Make Side Hustle
It’s a known fact that having a side gig will help you earn a little extra money. Look out for something you like doing: babysitting, pet sitting, mowing lawns, washing cars, cleaning houses, or working in the barista.
Ceasing on opportunities and making an effort to make money will help you save a little more. You can explore your creative skills and make DIY items and sell them or cook goodies at home and sell them.
A part-time gig will help you save money, manage time, and learn how to earn money.
8. Track Your Spending
Take time to evaluate your expenses. Are you unnecessarily spending on fancy things? By cutting it down, how much are you saving? Make a list of things you need to spend during the month.
Check your bank statements, hard or soft copy. Write down expenses for the past 2-3 months. Separate your expenses into entertainment, education, or shopping. Budgeting these categories is up to you.
Once budgeted, keep track of your expenses. This way, you’ll learn to save money, spend wisely, and secure for the future.
Conclusion
Starting to save money as a teen is a crucial step to building financial security. Have a goal set, and as you reach it, you will feel accomplished.
The above nine ways to save money are small steps you can take to grow financially stable from a very young age.
Start the habit of budgeting, track your expenditures, open a savings account, look for options to invest in small ways, find a side hustle that makes you smile, add a penny to your piggy bank, and make a difference.
Save money as a teen and ease chaos in the future. If you want a platform to start saving, try Beem, a Super App that provides various tools and services to help individuals improve their financial situation.
