Top 5 Tips On How To Save Money as a Teenager

You can never start too early on your path to being a financially responsible person. No matter if you’re 13 or 18, understanding the value of money and implementing effective budgeting habits during your teen years will help you easily use those same fundamental saving habits into adulthood.

Saving money is essentially just using less money than you have coming in. Whether you have a part-time job, side hustle, or weekly allowance doing chores around your house, it’s important to keep track of that money you earn. Instead of just rushing to buy the latest video game or trendy makeup product, you can save that money and make it work for you.

In this article, you’ll learn the top 5 tips on how to save money as a teenager. You’re never too young to start practicing healthy money habits!

1.  Keep Track Of Your Spending

By effectively tracking your expenses, you’ll know exactly where your money is going to be able to cut unnecessary expenses and save that money. For example, if you notice each month that you spend 80% of your money on new clothes, evaluate whether those purchases were “splurge” purchases and if you could have saved that money.

How To Track Your Spending

It’s easy to lose track of how much you spend each month, let alone each week. However, it’s essential you keep track of your spending. Not all spending is bad; however, it’s important you are aware of where your money is going, and what category (subscriptions, beauty, entertainment, etc.) that purchase was in.

There are many great ways to track your expenses. You can simply use an Excel spreadsheet to track how much money you earn, how much money you spend, and what types of purchases you make to be aware of your spending habits.

Listing your expenses in a notebook is a straightforward way to track your spending each month.

There are also budgeting apps that you can link to your bank account to help you keep track of your spending (i.e. Mint).

2.  Open A Savings Account

Another way to save money is by opening a savings account. This will motivate you to start putting your money into this account, even if it’s just a little at a time.

If you have a part-time job, you may be able to set up direct deposit where your paycheck is automatically sent to your bank account. You can then allocate some of your paycheck to your checking account and some to your savings account.

If you are too young to have a part-time job, opening a savings account is still a good idea to be able to put away any money you get as a gift or for doing chores around the house.

Some savings accounts even allow you to earn a small percentage of interest which can further add to your total in your savings account. Although the interest rate will likely be very small, anything helps with saving money!

3.  Work A Part-Time Job Or Side Hustle

In order to save money, obviously, you must have money. Therefore, if you are of age to work, consider getting a part-time job where you can earn some money over the summer or on the weekends while going to school.

If you are too young to have a part-time job or need a more flexible job to balance school and work, side hustles are another alternative to making money.

A side hustle is a great way to make a bit of income, while still being relatively flexible with your school work and any extracurricular activities you may do.

Here is a list of side hustles you can do to make some extra money:

• Babysitting
• Pet Sitting
• Sell On Etsy
• Tutor
• Resell Old Clothes On Poshmark
• Yard Work Services
• Food Delivery Apps (if of age to drive)
• Paid Online Surveys
• …and the list goes on and on!

There are so many ways to make money, even as a teenager! So, don’t get discouraged if you’re too young to legally work a part-time job. Instead, ask your parents or a trusted older sibling or adult to help you start your own side hustle to start making money.

4.  Set Realistic Budget Goals

Setting budget goals can help you stay motivated to save your money. For instance, instead of buying a new piece of clothing each week, you can save that money to buy a more valuable item or experience in the future.

Need $1000 for a new laptop for college? Want to go on a trip?

Although these above ideas cost more money, they may be more valuable long-term rather than “wasting” your money on things you don’t need like a trendy clothing item.

By setting clear goals you’ll be more motivated to want to save to reach your budget goals.

5.  Stick To Your Budget

One of the most difficult things about budgeting is actually sticking to your budget. However, if you have helpful spending and saving habits in place, this will make sticking to a budget easier.

A helpful trick to reduce unnecessary purchases is by considering if the thing you are purchasing was worth the time and effort you put in to make that money in the first place.

For instance, if you make $10/ hour working a part-time job and want to buy a $200 purse you may only use a couple of times, is the purchase worth 20 hours of your time it took to make that money?

Taking the time to carefully consider where your money is going and if it’s “worth it” will not only help you save money on unnecessary expenses but will better help you stick to your set budget.

That’s A Wrap

You’re never too young to start learning how to save money as a teenager. By practicing these healthy money-saving habits early in life will help you use these habits into adulthood.

Money is just an exchange of value. Therefore, spending money isn’t bad. However, as a teenager, it can be easy for you to want to spend all the money you make right away. Yet, with the power of these top tips on how to save your money, you can stick to a budget, track your expenses, and effectively save your hard-earned cash.