Saving money as a teenager is hard. There are so many money consuming distractions such as getting a new gadget or hanging out with friends on weekend trips.
It’s painful to deny yourself of these gadgets and vacations when you want to save but it is also necessary for the long run.
The reason why majority of people in the world go broke links to a poor saving culture/habit. This is predominant among older people as young people have gradually followed the trail.
As a teenager you need to learn how to save money. Saving money is not easy and requires discipline but the benefits are huge.
So, if you want to save and manage money as a teenager, you have to;
1. Open a Savings Account
A savings account is basically an account wherein you keep money away for the purpose of saving. Most times, it could to fund a project or for use in the rainy days.
There are a good number of avenues or financial institutions where you can open a savings account. While some of them give you interests on your savings, other don’t.
According to MoneyUsNews, Capital, One, Ally and American Express offer some of the best savings rates.
2. Track Your Expenses
One of the consistent activities you must engage in to save money as a teenager would be to track your expenses.
Your expenses are channels that take your money away from you so you must ensure you minimize them to the lowest level.
A good way to track your expenses would be to open an e-wallet. With an e-wallet, you get notification anytime you spend money. More so, you get a report of your expenses weekly or monthly depending on when you set it.
According to Due, some of the best digital wallets are Due, Apple Pay/Apple Wallet, Google Wallet, Android Pay, Samsung Pay, and PayPal.
3. Set a Savings Goal
A very important part of saving money would be a saving goal. A saving goal helps you build the discipline and consistency you need when saving money. Your saving goal will be completely influenced by you.
Avoid putting yourself under any unnecessary pressure to achieve a goal. Your goal has to be simple, objective and achievable.
4. Use a Budget
A budget is a strong financial discipline tool. Understanding the use of a budget is a vital tool which helps you know how to save money as a teenager.
You can create a personalized budget easily by listing your income, expenses and savings.
If you don’t know how to create a budget, you can use tools like Mint, YNAB, Pocket Guard, Good Budget etc.
5. Get a Summer Job
Summer holidays are usually a nice time to rest and enjoy yourself. A time to be away from the stress of the academic institution.
As much as rest is important, if you want to save money as a teenager, you need to be working.
Since all schools are on vacation during the summer, you can easily get a summer job. With the income you get from your summer job, you input it into your savings account.
6. Leverage Investment Opportunities
Saving your money is a good idea but to multiply your money, you need to invest it into money yielding avenues.
Now there are a lot of investment opportunities lying around and you shouldn’t just take a pick from the lot.
Instead what you can do is to perform some research and speak to your parents about your plan.
Read more: 8 Ways to Make Your Money Work for You
7. Ask For Money
This is the last and easiest step if you want to start saving money. Your parents and relatives will always to be willing to help you out with some cash. However, you must show them how you plan to use the money.
Your plan to use the money determines how much you get so you have to make it effective, simple, and concrete.
According to World for Business, there are about 50+ business ideas for teens to start up in 2020.
A lot of young people easily go broke not because they don’t have access to money, but because they have a bad savings habit. A savings habit is necessary for survival both as a teenager and an adult.
Executing simple everyday tasks towards your savings goal will help you to stay motivated as you start saving. Indeed, saving doesn’t become a burden anymore but a habit.
Ensure you save today for a fulfilling and better life.