Whether you want to save for a trip to France, a new phone, or just a great day out, some of the bigger purchases mean that you will need to put money aside.
As a teenager, that’s especially difficult because you are likely not earning anything at all or just very little.
Saying this, there are a few clever ways to save cash, from keeping track of your money to opening a savings account.
We take a look at how to save money as a teenager and get the most out of their cash.
1. Keep Track Of Your Purchases
Before you can start saving, it’s a good idea to get an idea of how much money you have available every month and how much of this money you spend.
You can keep track of your income and expenses in a notebook or create a small excel spreadsheet with a few simple columns: income, purchases, date, and the type of purchase.
If you cannot categorize a certain purchase, then still make a note of it and create its own category for the item.
You will then see what you have left at the end of the month, which you can use as savings.
But another good reason is that keeping an eye on your purchases will help you save. It reminds you of all the things you spent money on, including the little things you might not have needed.
If you don’t want to fill in a notebook or spreadsheet, then there are also some clever banking apps that can help you reach your savings goals.
2. Separate Your Spending Money From Savings
Now that you know how much you can save monthly, you are ready to put some money aside.
The best way to do this is by separating the money you use for purchases from your savings money.
There are a few different ways to keep your savings separate from your normal spending money.
You can either open a savings account and put your savings there, or you can keep your savings money as cash in a little savings pot.
Some banking apps also offer separate savings wallets that allow you to easily move your money from your account into a separate “wallet” so you are not tempted to spend it.
It’s always worth remembering that your savings are an emergency fund, and you shouldn’t touch them unless you need them urgently.
3. Set A Savings Goal
Setting a goal for yourself and your finances can be a great way to challenge yourself to spend less and save more.
But try to keep your savings goals realistic. You can set financial goals monthly or even just every year, depending on what you want to save for.
Remember that you only save the money that you have left at the end of the month, so you are not going short.
We found it useful to write individual savings goals down.
They can be short-term goals, like saving for a special meal with your boyfriend or girlfriend, or you can also set a longer-term savings goal, like saving for a trip.
4. Start A Savings Account
A great way of saving money as a teenager is by putting some cash into a savings account.
No matter how small the amount of money you can put in, you must put money into your savings account regularly.
This could be daily, weekly or monthly, and even small amounts of money will add up over time.
A great advantage of a savings account (over a cash savings pot) is that you earn interest on your savings.
With a savings account, you can quickly get an overview of all your savings and how close you are to your savings goal.
5. Use Your Student ID
Saving money isn’t all about putting something aside it’s also important to reduce your spending as much as possible.
That’s where your student ID comes in handy. This little card can help you get discounts on some of your favorite retailers.
Not every retailer openly advertises their student discounts, but it’s worth asking.
You can put the money you save when shopping aside for your savings.
6. Spend Smart
Spending your valuable cash in some ways is one of the best ways to increase your savings pot bit by bit.
Consider sharing costs with your siblings or friends wherever you can. This could be on trips, magazines, subscriptions, or anything else that you can think of.
Splitting the costs of some of your larger purchases is a good option to save money.
Also, try to get your hands on gift cards and vouchers. They can help you reduce your spending even more.
7. Pick Up A Job
One way of increasing your savings is by increasing your available money, which works best when you pick up a small job.
This could be just doing some housework and getting an increase in your pocket money, or you may want to get a summer job.
It’s a good idea to check with your parents about what you can do around the house for some extra cash.
Doing some basic things like washing clothes, folding laundry, or looking after your siblings can take a lot of work off your parents’ hands.
If you aren’t too keen on housework, then a summer job is an ideal way to earn some money on the side, especially if you don’t have any plans for the summer.
Summer jobs also have another great advantage. You can gain some valuable work experience that might help you get better pay later.
You may even consider keeping the job for longer, which means you can bump up your savings.
Final Thoughts On How To Save Money As A Teen
There is no doubt: saving money as a teenager can be tough, especially if you haven’t got any work experience yet.
However, even small changes in your purchases and your savings money can make a big difference to your savings in the end.
As a current Mortgage Underwriter with 15 years of experience, I have seen my fair share of money-related issues. Whether that be high levels of debt, not enough credit, or simply a lack of funds - I’ve had clients who fit into these categories.
Here I will share tips, tricks, and experiences on how you can get yourself back in control of your finances.
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