How To Save Money As A Teen
“Average annual income for 15-17-year-olds is only $4,923”
Having money in your youth is a blessing.
It allows you to buy the things you want, get you the places you want to go, and do whatever you want to do.
But the problem for many teens face, is that they don’t know how to save the money you want to spend because you have to have money to spend money right?
I totally get not having any money, but after looking around, I found what I think are the best points if you want to start saving more and having more money in your bank
1. Start Saving As Much As You Can
This might come out as a kind of duh, but it is crucial. It's the same as waking up in the morning or combing your hair before you go to school, it becomes a habit once you get the hang of it.
Whether it’s a $5 or $50, it's all going the same place. It doesn’t matter if you’re hoarding cash or have a savings account opened at your local bank, it could even be finding coins lying around and stashing them for future use, as these are all forms of saving money.
Every penny found and saved today equals a penny more in the future. Don’t forget that you can also grow your money, which is having your money make more money, with the secret sauce being time.
2. Get A Hold Of Your Spending
Money has a bad habit of flying out as fast as it comes in.
This happens when your spending is out of control. As soon as you get paid, you spend it all, leaving you with nothing left.
Spending is a part of life, but if you’re trying to build a big amount of money, you need to get this in check.
Large amounts of wealth can be amassed with a small amount of money flowing in if you know how to do it right.
A quick little hack to help control spending is using cash instead of a debit card, as your mind will feel like you’re losing more when you get to witness the cash leaving your hand, instead of just using plastic.
Another awesome tip is to look for a bargain wherever you can. Just the other night, I was outsourcing with my friend, where I came across five financial education books, each valued at around thirty dollars and after a little bit of negotiating, I actually walked away with only paying thirty dollars for all five, saving me over a hundred and twenty dollars if I was going to buy them brand new.
3. Learn About Money As Soon As You Can
Just like everything in life, you always have to learn how to do it. Money is no different.
There are certain rules and laws that you as a person must learn if you’re wanting to grow and multiply your money, and it's easier to learn this as a younger teen than as an adult because you have the power of time on your side.
Time is the one thing in the world where you only have a certain amount of, and there's no way to get any more or any less, making it extremely valuable.
This is why it's a must to start young, because say if your friend starts saving for something big for their future at the age thirty, whereas you start at seventeen, by the time both of you are sixty-five, instead of having only 35 years of savings built up, you have an extra thirteen years, giving you a better return in the future.
There are tons of places where you can learn to use the power of time, combined with financial education to generate wealth.
My personal favorites are watching youtube videos, reading articles, and good old 'books. I’ve already written an article about my top five financial books, but the youtube channels I’d recommend would be Alux.com and The Minority Mindset.
4. Invest In Knowledge
Every billionaire in the world may not have become rich in the same way, but what all billionaires have in common is that they read books. A lot of books.
Warren Buffet reads five to six hundred pages a day, Bill Gates reads fifty-two books per year, and Mark Zuckerberg reads about a book a week.
What does this tell you? All three of these wealthy men believe in the power of knowledge, and each one praises it.
Knowledge is the one thing no one can ever take away from you, and it's having the power of knowledge that pays the best interest over time.
And the source of this knowledge comes mostly from self-education, or in other words, reading books.
Only after learning about how money works, can you really generate wealth, and the best place is starting could be as easy as hitting up your local thrift store and looking through if you’re wanting to save a few bucks, or Amazon also has fairly decent prices as well.
5. Know The Power Of Time
As I touched upon in number three, time is the most valuable concept in the world. We only have a certain amount, and it's what you do with that time that really matters.
Whatever you decide you’re going to do if that’s starting a business, finding a new job or whatever it might be, the best day to get started today.
There is usually not a quick and simple answer to many of the problems you face today, and there’s almost never a get rich quick scheme that can save you. Only time can help.
6. Take Each Opportunity You Can
There’s a lesson in the “The Richest Man In Babylon”, where it states that a quicker way to earn money, is to take each opportunity that comes your way.
What this means is that opportunity for you to have the chance to acquire money comes very infrequently and that it's most important that you pounce on them and make the most out of them while you can.
Whether this being working extra shifts or taking a job on the side, or finding a wonderful investment, it all adds up. Any extra opportunity to make money will be worth the wild if you use your money correctly, meaning you don't just spend it off as fast as you get it and it’s crucial you keep your eyes open and don’t let those opportunities fly by.
7. Making The Most Of Your Student ID
Overall a student ID is basically a get stuff cheaper card
This includes tuition costs, bus tickets, movie tickets, and even Amazon Prime discounts making the most of your student ID can be the make-or-break for how much money you want to save.
And the best part they're not hard to find either, almost each and every high school or university gives of out and most places in your country will also use them so it's very important that you make the most of while you still have that discount while you're still in school.
8. Manage Your Impulses
This one's kind of hard to manage.
Because impulses come in waves, remember the fidget spinners? Well now they're gone and nobody has anymore and if you like the people at my school, some people are buying 10 to 20 of them but now they nobody wants them and they’re worth nothing
Whatever it is you want and whenever you feel the urge to buy it, the best piece of advice I found was to ask yourself this “Do I absolutely need it?” and if that answer is no, simply don’t buy it.
Impulses can actually come with some social pressure because if it's in your social group and that trend is going around, you don't want to be the only person without whatever that trend is but if you're serious about saving money you should be okay with making this sacrifice, as, after a bit of time, I guarantee that the trend will have passed
9. Find A Job And Start a Side Hustle
As a teen, a job as a very quick method to make you money but overall it won't make you the moment that you want
You can only work a certain amount of hours a day before you need to sleep, eat, go to the gym, see your family, or do whatever you want but for most people who aren't interested in putting in the work to create a business or something, a job will be able to do just that
If you were to start a business, you won't make any money fast and quick but over time, which might be a year or two, eventually you'll start to see some growth.
If you put in the work and if you continue to grow it sooner or later you'll have an actual business that will run and as a teen, you can use the power of time to your advantage which will give you a head start on if your friends or competitors who were to put it off for a later date.
10. Which Traps Steal Your Money
These can come in many shapes and sizes
You may not notice it but that Starbucks coffee can you get every day eventually will add up to a pretty big bill this goes the same with eating out super frequently and buying the stuff you don't need.
When you're trying to save money and grow your amount of money these are all traps and hooks to get you to spend all your hard-earned money.
Don't get me wrong. It’s totally okay to get that stuff once in a while but every day. sometimes even twice a day, seven days a week starts to add up, is really expensive and as a teenager, you probably don't have the cash to do that and it's again just a trap that'll sink and pull your money out from you
The best way to start in the fix this problem again ask yourself do I need it and if the answer is no don't buy it if you change your mind at a later date you can always go back but again a dollar saved today could be ten dollars some day in the future.
Being a teenager without money can be tough but it can be even tougher if you don't know how to effectively save that money
After going through the web and asking people around where I live I came up with these ten main points which should be able to help you in some way.
And remember, there’s no better day to start than today