Teaching your teen how to properly manage their finances can be quite a challenge but if you can get through to them and teach them the importance of Money Saving – you’ll be doing them a huge favor. The sooner they learn it the better off they’ll be.
Give your teen the advantage of avoiding financial pitfalls you may have faced.
Below are some practical money saving tips for teens to help your teenager save more of their money and still have a life at the same time.
25 Saving money Tips for Teens
1. Pay yourself first
This all-important rule tops the list of money saving tips for teens because it ensures the money you intended to save does indeed go into your savings account.
Setup an automatic debit into your savings account. This is a fool-proof method that prevents the money being spent on other things.
2. Don’t carry cash
For teens prone to buying on a whim, rule #2 from my money saving tips for teens list is an easy way to save cash – just don’t carry any.
It’s too easy to give in to impulses if you have cash in your pocket. If you don’t have cash on you you’re less likely to waste money on spur of the moment purchases you don’t really need.
3. Day rule – Like rule #2
From the money saving tips for teens list, the 2 Day rule helps you save money but it also helps you make good, sound purchasing decisions.
Before making any big purchases give yourself two days to think it over. Ask yourself if you need it or just want it. In most cases, at the end of the two days you’ll find you didn’t really need it.
4. Track spending – saving money
It’s very important to know exactly what you spend money on and how much on a day-to-day basis. You can do this by keeping an expense journal, keeping all receipts or tracking transactions through your bank online.
5. Start a budget
One of the key money saving tips for teens is to get on a budget. It’ll help keep your spending under control and help you save more money. See how to create a budget.
6. Save & pay cash
Another key rule from this money saving tips for teens list which is especially important for young adults and teens since they’re more likely to buy impulsively.
No matter how badly you think you need or want something, if you’ve already decided to buy something – save enough cash to buy it. Cash is always the way to go when it comes to purchases big or small.
Try to avoid borrowing or paying on credit as you will usually end up paying much more than the original value of the item because of tacked on interest.
Also, if you save cash to buy the item it may go on sale by the time you’ve saved enough money to buy it.
7. Avoid bank fees
Here’s one from our money saving tips for teens list your teen may already be doing. Use online banking to eliminate bank fees.
8. Monitor your credit – saving money
It’s extremely important to keep a close eye on your credit. Your credit rating and score will play a critical role later on when it comes time to buy a car or get a mortgage or even certain jobs.
It’s also important to regularly monitor your credit for possible fraud or identity theft, since these problems can tarnish your score and can take a very long time to clear up.
Report any discrepancies like unauthorized charges you find in your credit report to your credit bureau and creditors immediately.
9.Pack a lunch
A no-brainer way to save yourself a few extra dollars that can really add-up to big savings if you eat out often.
10. Use credit card for emergencies only
If you have a credit card you should never use it for purchases or entertainment. Use it only for emergencies!
11. Don’t take on more debt – saving money
Avoid taking on more debt, don’t apply for loans or credit cards. It’s okay to have 1 credit card if it is used just for emergencies but adding to that will just bog you down in interest payments – more of your money will go to creditors instead of going into your bank account.
12. Avoid pay day loans
NEVER EVER apply for these money traps! You’ll do yourself a huge favor and save yourself a alot of money and grief by steering clear of this type of offer.
It can be extremely difficult to break the cycle of pay day loans so if you must borrow ask your parents – anything is better than a pay day loan.
13. Get the right cell phone plan
Text alot, make sure your plan includes no extra-charge unlimited texting. In order to avoid needless and expensive charges make sure your cell phone plan suits your needs – better yet use it sparingly.
14. Use public transit – saving money
The lure of driving your own car is tough to pass up for any teenager but consider the huge added expense of driving and maintaining a car.
A car will cost you big bucks. First, you might have car payments, then insurance premiums, registration and licensing fees and of course it will need gas and maintenance.
You could be using up all your extra money just to drive your car. If saving money outweighs the need for a car – just take the bus.
15. Use a shopping list
If you buy your own groceries, do yourself a favor and use a shopping list when you buy groceries.
Write down everything you need, estimate the cost of each item on your list and add up the total. This is a simple tip that will prevent you from overspending on groceries.
16. Check library before renting DVDs – saving money
If you rent movies alot you can save yourself alot of money by checking out the DVD’s or movies at your local library.
17. Buy used textbooks
Another great money saving tip for students is to buy used text books or better yet if you know someone that already owns and no longer needs the textbook you need, ask if they will lend it to you.
18. Buy clothes at thrift or second-hand stores
This is a great way to save money. It may not be cool or fashionable to you but you have to decide what’s more important – saving money on clothes or paying too much just to wear those designer labels.
19. Invest long term
If you have a few years, put your money into a good mutual fund or other long term investment. You will end up with much more money in 3-5 years than you would by putting it into a savings account.
20. Bank money received for grades, birthdays & gifts
Deposit any Christmas or birthday gifts or whatever other cash you might receive on special occasions to really kick your savings into high gear.
21. Sell stuff – saving money
If you have stuff you no longer want or need just taking up space – you might be able to sell it and make a respectable chunk of change.
Considering having a garage or yard sale, sell it on free classified like Kijiji or CraigsList or at auction on eBay.
22. Save loose change
Put all your spare change in a piggy bank or jar. You’d be amazed at how much money you can save by the end of the month.
23. Get a job
Get a summer or part time job. If you can’t find a regular job start thinking about creating your own jon opportunities, offer to paint rooms, mow lawns, babysit, walk dogs or general labor.
24. Get a room mate
Already got your own place? Get a room mate to split the rent and other expenses with you.
If you’re gonna ask a friend to be your room mate try to pick one that you think will be able pay their share of the bills.
You don’t want a freeloader moving in with you because then your supporting them as well as yourself.
25. DON’T move out of your parents’ house
Finally, I save the best for last. This is the most important of all the money saving tips for teens in this list.
It may seem hard to imagine right now but if you’re living with your parents you have it made! Think about it, free food, free place to stay, free phone, free cable and you might even have access to a free car!
My suggestion to you is – keep living with your parents for as long as they will put up with you. The longer you can live expense free the more money you will be able to save for college or for a car.
