If you’re earning your own money now, you probably get lots of advice from friends and family about how you should spend it. But what about saving?
We’re not suggesting you save all of it. You work hard for that money, it’s yours, and you should enjoy it, but it’s so easy to overspend and be left short until payday. Saving isn’t the boring option; it’s the sensible option. Having a healthy savings account that will keep you going for a while if the worst happens is a good thing and will make you feel comfortable.
There’s lots of great information on the internet, but there is a lot of fake news, too. There is still a lot of work to be done to teach teenagers about good money management and budgeting. Hyperjar is designed to make saving and budgeting easy so teenagers can be money savvy and manage money like a pro.
Why you should start saving as a teen
Saving as a teen is a great way to build good financial habits early. If you start budgeting, saving, and spending responsibly now, you’ll be in a great position when you move into adulthood.
Teenagers want to do many experiences, and most of them need to be paid for. If you’re planning to move out or go to university, having some extra money saved will make the process more comfortable for you, so you aren’t stressed or worried about money. Think about what you would do if you lost your job or needed expensive repair work on your car.
It’s important to determine the difference between want and need. There are things you must pay for, including:
· Debt payments
There are also non-essentials such as gaming, tech, clothing, dining out, and social events. You can work out where your money is going with a budget planner. This will show you how much you’re spending compared to your earnings.
Things to save up for as a teenager
What you save up for is up to you. Everyone’s hobbies and financial goals are different, so don’t feel confined to this list (although we think it’s pretty good). Feel free to add your own and create savings goals that are unique to you.
Here are some things you could save for as a teenager:
● A car - Learning to drive, insurance, tyres, fuel, maintenance
● Prom - Dress/Suit, transport, party, hair, makeup, shoes
● Hobbies - Whether you’re into sports, music, gaming, or crafting, you can save to support the hobby you enjoy
● Deposit for a house/flat - Moving in with friends/partner, student accommodation, moving out, renting
● Travel - Travelling is a great thing to do as a teenager, do it while you can. You could be saving for a solo trip, your first holiday with friends or saving money for the next family trip
● Gap year - Taking a gap year before university is a great way to see the world and learn more about yourself
● University - Textbooks, trips, student events, transport, accommodation
● New tech - The newest tech is great, but it’s also expensive. Saving a little each month towards it will mean your bank account takes less of a hit
● Emergency fund - It’s always a good idea to have an emergency fund to cover any unexpected costs you haven’t planned for. Sometimes things happen, and it’s important to have cash saved, so you have extra money to cover any emergencies
● 16th/18th/21st birthday - Special birthdays come thick and fast during your teenage years; if you want to buy something special, you need to save. Instead of gifts, you could ask for money for your special birthdays to help keep your savings topped up
● Gym Membership - Taking your health seriously is important, and having a gym membership can help. They can be expensive so saving up for a membership is a good idea
● Tickets for a concert or a festival - If spending money on experiences rather than material things is what you like to do, concerts and festivals are probably on your list
● Starting a business or a side hustle - To make a business successful, you need to invest money into it. Investing early will increase the chances of your business doing well
· Retirement - Retirement may be the last thing you’re thinking of, especially as you’ve only just started working. But saving for your retirement will mean you have an easier life later. Even a small amount each month will add up over the years
Remember that with some purchases, you must consider the continued ownership cost of what you have brought. For example, if you want to learn to drive, you’ll need money for the lessons and money to buy the car, insurance, tax, and MOT. You’ll need to have enough money to purchase a car and fund the cost of running it.
HyperJar can help you reach your savings goals with our savings jars. Simply label your jars ‘Concert’ or ‘New laptop’ or anything you like and watch your savings grow. Focus on how good it will feel when you have saved up enough money to buy what you want or reach your savings goal.
Tips for saving up for things as a teen
Saving money can be difficult at first, especially if you haven’t done it before. Things to save up for as a 13-year-old will be different than things to save up for as a 16-year-old, but the skills are the same. Starting as a teen will ensure you have good money management skills for the rest of your life. It’s a skill that has lifetime value.
If you’re looking at things to save up for as a teenager but not sure where to start, these tips on how to save up for things should help you out:
How much do you need?
First, work out how much you need to save to reach your goal. Then you can see how much you can save per month. If you reach your goal, don’t stop there. Keep going and watch your savings grow.
Be realistic with your savings goals. If you aim too high, you may be disheartened and give up. Start with a small amount or aim for a lower-cost item you’ve had your eye on. Don’t leave yourself too short and remember to enjoy your money.
Make a budget
Making a budget is the best way to manage your money. Divide your income between all your essential payments, then save the rest to enjoy or keep for a rainy day. Knowing how much you have left over each month, you can enjoy it without worrying about overspending. You can find more helpful Hyperjar tips on budgeting here.
It may be tedious sometimes as you wait for your savings to build but be patient. It’s incredibly rewarding to reach your goals and know you have been responsible enough with your money to buy what you want.
Use your student discount
One of the best ways to save is to pay less for the same thing. Many shops and restaurants offer a student discount, which will help you spend less and save more.
Cancel any subscriptions
Do you have subscriptions that you signed up for but forgot about, or has the 30-day free trial expired? Take the £10 you were spending on a subscription and put it towards something you really want.
Hang out at home
Instead of going out, host game nights or movie nights at home. It’s about who you’re with, not where you are. Your friends are probably saving too, so you’ll be helping each other out.
Saving is a great habit to get into as a teen. Once you can prioritise what you need rather than what you want, you’re smooth sailing. Saving means you will have more financial security, money for your essential and daily spending, and money to enjoy. Life has a funny way of throwing surprises your way now and again. Saving means you’ll have some money to fall back on if you need to. HyperJar is here to help you with your savings and help you reach your goals as a teenager and beyond.