Money Saving Tips For Teens

How to save money should be something we all learn from a very young age, starting to save in your teenage years could set up you for life if done properly. It’s certainly a skill you will have for life once learned, here are my top 5 money saving tips for teens.

Tip 1 – Get a Job
If you haven’t already this would be my first tip. Getting a job just a few hours a week give you some extra money, how can you save money if your not making any?

Tip 2 – Set up two bank accounts
Bank accounts are generally free for under 18’s. You need to set up two, one that you have card access to and a separate account with a high interest rate. The high interest rate will make your money work harder for you. Make sure you don’t have card access to the second account, this will tempt you to spend your savings.

Tip 3 – Have your employer save for you!
Most employers would have no problem paying a percentage of your pay to a different account, 10% of your pay is a good place to start, you could also request a set amount if you prefer. I like the idea of 10% because the more you work the more you can save.

Tip 4 – Odd Jobs
If you have trouble finding a job ask family and friends if they have any odd jobs you can do, this might involve washing cars, mowing lawns, ironing clothes, cleaning out fridges or garages, dog walking. Get creative and make a list of all the jobs that you are willing to do and how much you want to charge, then get on the phone to aunts, uncles, grandparents, family friends and anyone else you can think of. I would not recommend door knocking, it can be dangerous to knock on doors of people you don’t know, you may also find that people you know are more likely to be regular customers, you would be surprised how much money you can make from this. Just make sure you save at least 10% of the money you make, maybe ask some of your customers to pay straight into your second bank account.

Tip 5 – Ask a parent
If you think that you are going to have trouble saving, ask a parent to open an account with you. Set it up so that it requires both of you to be present to make any withdrawals from this account. Your only young, it takes time to learn the discipline of saving, I find setting up your second bank account this way is a great tool to teach you how to save. Even if you ask your parent to do this for only 12 months, after then you should have saved a fair amount and that should be motivation enough to keep you saving.