So you are a teenager looking to save some extra money. It might be money for college, a car, new video games, clothes, or just money to hang out with friends. Whatever the reason is, these 13 easy ways to save money as a teenager will surely help you out.
You probably have never even thought of some of these teen money-saving tips.
You can save money as a teenager by saving gifts, avoiding overspending, starting a profitable side hustle, and putting money away every paycheck. Buying used, going thrifting, and taking advantage of student discounts are other great ways to save money as a teen.
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How To Save Money as a Teenager
Here are the 13 best ways to save money as a teenager.
1. Save Gifts
Saving gifts is one of the best ways to start saving money as a teen. Every dollar counts. So anytime you open a card or present with a few bucks in it, put it away in a jar or safe to save for later.
This method of saving works best for teens who are younger and might not be old enough to start working a part-time job.
It works best for teenagers who start saving early on because, after a few years of saving gifts, you could easily see it grow to a substantial amount.
It might be tempting to go out and spend your gift money. But if you save it early on, you could start to put it towards bigger expenses such as buying your first car or saving for college.
2. Avoid Overspending
As a teenager, it can be tempting to spend money as soon as you make it. Getting that brand new phone might seem like a good idea at first. But later on, there’s a chance you could regret that purchase and wish you saved your money.
So to prevent overspending, ask yourself if it is something that you need, or just want at the moment.
If it is something you want because it looks cool, or your friends are saying you should get it, really consider if it is worth the money.
If it is something you think you actually will use and find value in, still sleep on it. Think about it for a bit and if you still want it later, then purchase it.
Doing this will help you not overspend on things that you do not need.
Most of us are guilty of spending a lot of money on impulse purchases. But later on, buyer’s remorse sets in and we regret the purchase.
Just ask yourself this question before every purchase; is it something you need?
3. Start a Profitable Side Hustle
One of the best ways to save more money is to make more money. Pretty simple right?
Well, starting a side hustle is by far the easiest way to increase your income each month.
The choice is yours. There are a TON of different side hustles that you can start. Each is unique in its way.
But no matter who you are, you can save more money by starting a profitable side hustle.
4. Look For a Summer Job
If you’ve got some free time during the summer, consider looking for a summer job.
Summer jobs can be a great way for teenagers to save a ton of money in a short period.
You could make a solid income depending on how many hours you work. It’s not uncommon to make at least a couple thousand dollars working a part-time summer job.
5. Put Money Away Every Paycheck
If you do end up working a summer job, or get a part-time gig during the year, make sure to save money every paycheck.
It is tempting to splurge after receiving your first paycheck. However, it is advised not to do that. Especially if you want to save for much larger expenses down the road.
You can still put money away in a savings account and still have money left over to treat yourself.
Initially, you could start by only saving 20-30% of each paycheck and spend the rest however you want.
6. Buy Used
Buying used is another way that teens can save money fast. Anything from buying used clothes to buying a used car can save you a ton of money during your teenage years.
Purchasing your first car can easily be one of the largest expenses a teenager can make. Doing so, you will most likely spend thousands of dollars on a vehicle that you hope will work.
Teens looking to purchase their first car should consider buying used. Even just purchasing a used car that is only a couple of years old can save you thousands of dollars.
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7. Student Discounts
Student discounts are a hidden gem when it comes to saving money as a teenager. If you are currently enrolled in school many stores offer amazing discounts on products that you would have paid full price for.
8. Spend Less When Hanging Out With Friends
Hanging out with friends is a major part of being a teenager. This being said, it can be easy to overspend when you are out with friends.
Consider doing more affordable activities, or even free such as going on a hike. Hiking can be a great free activity to do with friends. Your wallet will thank you later as well!
9. Stick To a Budget
Budgeting might seem like a thing that only adults do. But there are advantages to sticking to a budget as a teenager.
This is especially true if you want to be financially independent and not have to rely on anyone for money.
There are a ton of free budgeting templates on the internet that make it easy to start. However, the most important aspect of a budget is staying consistent and sticking to it.
10. Go Thrifting
If you’re looking to save money as a teen and potentially find neat items as well, thrifting might just be for you!
Think of going to the mall, but at a discounted price. That’s pretty much what going thrifting means. You can find a ton of different used items for very affordable prices.
11. Spend Money Wisely
Money is hard to come by for most. This being said, since it is so valuable and takes a bit of work to earn, it should be spent wisely.
Imagine you get your first job as a teenager. You work those initial couple weeks and get your first paycheck of $500.
You worked hard for that money. You could go out and spend it frivolously, or it could be saved for later use.
Would you rather have a few minutes of fun and go on a spending spree, or do you want to go the responsible route and save it for future expenses, or investments? Ultimately, the choice is yours.
12. Consider Investing
If you start investing when you are young, you could be set financially by the time you retire. Popular ways to invest include investing in real estate, stocks, and crypto.
Each form of investing has its pros and cons. Research each individually and consider investing some of the money you end up making as a teen.
13. Use Credit Cards Responsibly
Credit cards can be a blessing and a curse. When used responsibly they can be a great way for teens to start building credit. However, many are not able to control their spending and end up with credit card debt.
If you tend to be an impulsive spender, it’s recommended to stay away from credit cards. But if you have self-control and can responsibly use a credit card, by all means, get one and begin building credit.
As a teenager, you could start building your credit by only using it when purchasing gas or groceries. Start with small purchases and learn the ins and outs of using a credit card.
How Much Money Should a Teenager Save?
A teenager should try to save up at least $1000. The amount a teen should save will depend on many different factors: living situation, current job, and any school or future expenses.
Building up a savings of at least $1000 is a good starting point. From there, analyze your situation to see if you need to save more.
Everyone’s situation is different. If you have any upcoming expenses, consider saving more to cover those expenses.
You want to avoid paying for any unexpected expenses with debt that you cannot immediately payback. Building up savings as a teenager is by far the best way to avoid taking on a ton of unwanted debt.
There are many different ways to save money as a teenager. But increasing your income is the easiest way to increase how much you can save.
Working a part-time job or side hustle will increase how much you bring in each month. This, in turn, will make it significantly easier to save more money.
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