Contrary to popular belief, teens can save money. Sure, understanding how teens can save money is difficult. This goes for teens and parents. It is not impossible for teens to save money. In fact, 56 percent of teens are actively saving money.
Many of the issues that arise when it comes to how teens can save money is the amount of stuff attracting teens to buy. It could be the new iPhone, or the latest sneaker trend. There are endless spending traps out there for teens.
Saving money as a teen, or helping your teen set up money saving goals, can be fun, exciting, and it can work. Ready to start saving money as a teen? The following, how teens can save money 6 top tips, may prove valuable. Let’s get to it!
1. Teens Can Have A Savings Account
The first logical step toward saving money as a teen is to have a savings account to dump all that hard-earned money saved. And there are plenty of savings accounts available for teens to leverage for money saving success.
Can a 13 year old have a bank account? Absolutely. Kids of any age can have a bank account, especially a savings account. One how teens can save money tip is to create saving target goals. Once there are targets in place, start saving. Targets and goals for saving can also help teens reduce spending temptations.
Parents can also make saving money more enticing for teens by matching his or her monthly saving contributions. This can be a great way to get the whole family involved. Come up with a percentage match, like a 401(k)/RRSP system, to add more value to saving money.
2. Purchases Need To Be Tracked Closely
As a teen, you will no doubt spend some of your savings at some point. There are new tech gadgets to buy, social events to attend, and more. Spending a little is not going to break the bank. However, you need to watch purchases closely.
One way to track your spending is to utilize technology already in your pocket. There are a ton of smartphone apps that a teen can leverage to help track spending and manage money in bank accounts, like the Treasure Card app and prepaid debit card for teens.
With a close eye on spending habits, it can be easier to understand where you can spend less, how spending is impacting savings, and more. You even get a sleek debit card that can be used anywhere you may need it.
3. Discuss Saving Money As A Teen With Parents
Saving money as a teen may seem challenging, but the good news is that you can always tap into what parents already know about savings. Chances are, parents already have the tools to make saving money easier.
Yes, asking parents can seem daunting. However, don’t count out the money saving pros. Bringing parents into the loop can also serve well if you want them to match your monthly savings (see teens saving money tip #1).
Saving money does mean that you will need to start working, whether at home or a job, which we will discuss further below.
4. Start Saving By Doing Tasks
Where can you start earning money to put toward savings? The first step is to set up tasks in the home. This is another way to get parents involved in order to move those teen money savings goals forward in a powerful way.
Parents will also be happy to have you do more chores around the house, since it can take some of the daily tasks parents need to do off the table. Cleaning bathrooms, mowing the lawn, and tackling home improvement projects, like paining a room, can build a teen savings account quickly.
Doing tasks for neighbors can also prove profitable for teens. For instance, picking up groceries for neighbors on a weekly basis can be a great teen business. Especially since many older adults don’t want to go to the grocery stores amidst the COVID pandemic.
5. Plan For A Summer Job This Year
With summer quickly approaching, it may be a great time to plan for a summer job this year. A summer job can help you build your savings fast, and get you out of the house on a regular basis. Summer jobs are also great for meeting new people and learning new skills.
For example, a summer job with a small business in your community could give you a headstart in business. This is exceptional for teens interested in becoming entrepreneurs.
Did you know that teen entrepreneurs are fueling tech startups? The number of teen entrepreneurs was up from 400 in 2009 to over 4,000 in 2019. That is an enticing statistic for any budding teenage entrepreneurs out there. A summer job can help give you new business skills while saving serious cash.
6. Take Advantage Of Student Discounts
With all that money coming in from your household chores and summer job, you may be thinking of spending a bit. This is all good, but be sure to spend your money wisely. One of the best parts of being a teen is your student ID.
Why? Your student ID can get you serious discounts on a ton of purchases, from apparel to tech gadgets. For instance, you can save hundreds on a new MacBook as a student. Or get 15 percent off at Vineyard Vines.
How Teens Can Save Money Tips Are More Important Than Ever
Saving money is a very important skill to have, whether you are a teen or an adult. The past economic uncertainty is a clear call to action when it comes to saving money, and starting as early as possible can prove beneficial for long-term financial wellness.
Are you a teen ready to save money? The above top tips can prove valuable. Be sure to talk to your parents about your money saving goals as a teen and make a strong plan to ensure your savings account keeps growing. How will you save money this year?