Saving money as a teenager can be tricky, especially if you’re only working part-time or are still in full-time education. But it’s not impossible.
Your Amazon Wishlist isn’t going to pay for itself. With the right guidance and tools, you can save money to enjoy now and in the future. Maybe you have your eye on the latest iPhone, you’re saving for driving lessons or you want to put aside cash for a car or university.
Whatever your financial goals, saving your money is always a good idea. Establishing money-saving habits early on will build money management skills that will benefit you well into adulthood.
This guide to how to save money for teens will cover the following:
Why Is It Important to Save Money as a Teenager
How to Save Money as a Teenager
The Benefits of Saving Money as a Teenager
Why is it Important to Save Money as a Teenager?
Understanding how to save money as a teenager is essential for your financial freedom, future, and fun!
Creating and following a budget can be challenging, but it’s a great habit to start working on. For parents, setting a healthy example of good money management is ideal. Saving money as a teenager is essential for several key reasons:
It builds financial safety
Having savings will give you a sense of financial security. Money can be a stressful subject; when you save, you can limit your cash worries. If the unexpected happens, you have some money to keep you going or pay for unplanned expenses.
If your screen gets cracked or your car needs new tyres, you’ll have the funds to cover it. You should also have money saved in case you lose your job, there’s a medical emergency, or any other surprises that life throws your way.
It covers the cost of large purchases
Teenagers are often saving for big-ticket items. Things like phones, cars, trainers and the first holiday without parents are all on the list. Sometimes, finding out how much things truly cost can be shocking, especially when you’re paying for them yourself. If you’re planning to go to university, textbooks and supplies can be expensive, too.
You can be financially prepared for upcoming costs by saving a little each month. You’ll also avoid unnecessarily going into your overdraft or spending on a credit card.
It gives you more freedom
Earning your own money will give you financial freedom. This means you can spend your hard-earned cash on whatever you want. While that’s tempting, it’s best to get into healthy money management habits early so you can enjoy the freedom money brings, such as:
· Holidays and spending money
· Saving for something special
· Outfits for special events
· Social events such as festivals, dinners, birthdays, and concerts
· Weekend outings
· A new car
It teaches financial responsibility and independence
Having access to your own money is a great feeling. But just as quickly as it goes into your account, it can fly back out again. That’s why you need to be responsible with your money. Financial independence is a big responsibility; if you don’t get a grip early, it can spiral out of control. To manage your finances responsibly, you can:
· Track and plan your spending with a budget planner
· Pay for bills on time, so you’re not hit with fees
· Set up a direct debit to pay money into your savings
· Review your budget regularly
It gives financial confidence
Everyone deserves a treat now and then. Saving up for something you want and finally buying it gives a sense of accomplishment and confidence. Money doesn’t grow on trees, but you’d see it growing in your savings account. When you have savings, you’ll feel more financially secure and make better financial decisions as an adult with a healthy money mindset.
Ways to Save Money as a Teenager
It’s finally payday. You see the money hit your account and think about spending it on the things you want. But take a moment to consider how long that money needs to last, what expenses you have this month, and how much you have saved.
Understanding how to save money for teens isn’t boring; it’s sensible, and tools out there make it fun and easy.
Investing apps are becoming more popular. They allow you to grow your money while taking advantage of compound interest. Learning about investing isn’t easy. It’s something you should research fully before you part with any money, as investments can go down as well as up.
HyperJar is for people who want to budget like a boss. You can link your card to any Jar and spend from it, share Jars, and limit or block spending with shops. All for free.
Being rewarded for shopping sounds too good to be true, but not with HyperJar. Our rewards system means customers can get brilliant discounts on everything from tech to travel. Brands partnering with us join the likes of Shell, My Protein, Gap, and Decathlon, benefiting from the Hyperjar model.
HyperJar Jars provides a modern savings account that separates your money into different jars you can customise. It’s easy to use, and you can see your progress with the touch of a button. It’s an excellent way for teens and students to save and keep track of their money.
To introduce kids to healthy money habits, our specially designed HyperJar Kids card and app will help kids get into smart money habits for life. It will teach them money skills without them realising it.
Take advantage of discounts
Who doesn’t love a discount? Paying less for the same thing is good money sense at any age so take advantage of discounts where you can. To save money, you could:
· Wait for Black Friday for big purchases
· Take advantage of the 2-for-1 offers at the cinema or for meals out
· If you are still in education, take advantage of your student discount. Sign up for a Totum card for even more discounts.
· Shop during store sales
· Use coupons and vouchers
· Cut costs where you can
When you’ve got a clear picture of your income and spending, you can see where you can cut costs to save even more.
· Workout at home instead of a gym
· Use public transport or walk
· Take a packed lunch
· Make coffee at home
· Car share with colleagues or friends
· Do chores around the house to earn pocket money
The Benefits of Saving Money as a Teenager
When it comes to saving money, it’s all about wants vs needs. You’ll need to prioritise and learn how to make your money last. The benefits of saving will not only help you out now but in the future, too. Here are just some of the benefits of saving money as a teenager:
· It teaches you how to be responsible with money and manage it properly. Making bad decisions now can affect your chances of getting accepted for loans and mortgages.
· By having savings goals, you can learn the value of money and that you need to be patient to get what you want. Saving for a home takes time, so the sooner you start, the better. You can save for holidays, a home and even your retirement – there’s no limit to your saving goals!
· If you reach your goals, don’t stop there. Keep saving and watch your account grow. Saving will give you a head start on future financial goals and make you less likely to rely on credit cards or loans to pay for things.
Learning how to save money as a teenager might be tough to get into the swing of things but keep going. Every small contribution adds up. Whether the money is from your part-time job, pocket money, or a gift from family, starting now will develop good financial habits that will last a lifetime.
Join with friends, ask your parents to help, or download HyperJar to get started today. Whatever your financial goals, starting saving as a teenager can only be a good thing. Your future self will thank you.