How to Save Money as a Teenager? 10 Tips & Tricks

Knowing these easy tips can help you increase your savings if you’re starting your first job or simply want to keep some of your pocket money.

Saving as a teen is not only a great way to get something you want, but it’s also a great way to establish a savings habit and gain first-hand knowledge of bank accounts. As a teen, you’ll need three things to save money: a savings account, a job or other source of income, and a goal.

Keep reading for the best money-saving tips for teenagers.

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Start by Opening a Savings Account

Create a savings account now so that you will always have a place to put the money you want to save for later.

If you’re under 18, your parent will probably need to assist you in setting it up. Savings accounts are almost universally available at banks; you can ask your parents for a recommendation or check with your neighborhood credit unions.

Finding one without a monthly fee or minimum balance requirement is probably best, and a high-interest rate is an added benefit. Then, all you’ll need to do is bring the necessary documentation and sign the necessary paperwork to set up an account and begin saving.

You might also consider opening a savings account online because, generally speaking, you will receive a higher interest rate.

Set a Savings Goal

Without a specific objective in mind, it is much more difficult to accomplish tasks. Create a precise and measurable goal to make saving easier.

Want to have $1,000 by graduation for a vacation? By the time you graduate from high school, do you need to have $2,000 for a down payment on your first car? Make those sums into more manageable weekly or monthly objectives to help you feel more capable of saving.

Separate Spending Money from Savings

Even though you’ve put the money you’ve earned in a savings account, you might be tempted to spend it if you’re low on cash. No—don’t touch it!

Your savings are not for simpler purchases like food and other everyday necessities, but for emergencies and necessities. The smart thing to do is to have a checking (or “transaction account”) and a direct deposit account which you can access on demand. If you don’t want to carry around too much cash, you can always open a student checking account and deposit some of your funds in it.

Your objectives won’t conflict this way. Unlike checking accounts, which are designed to meet your daily needs, savings accounts are created for the long term. Never forget that.

Make a Budget

You can create a budget that clearly prioritizes your savings if you know how much you need to save to reach your goal. When you start taking on more debt and other financial obligations, developing a budgeting habit now will be extremely beneficial. Whether you are 16 or 66, maintaining a budget is the hardest part.

Unfortunately, a lot of people develop the habit of slacking off their monthly savings when they need more cash flow. You’ll be one step ahead later in life if you can kick that habit early and start seeing saving as a necessary component of your monthly expenses.

Track Your Spending

The first step in having control over where your money goes is being aware of how much you spend. Many people are unaware of their monthly spending amounts or which categories (food, transportation, clothing, and beauty) they spend the most on.

By keeping track of every expenditure, you can better understand where your money is going and ensure that it is aligned with your priorities and objectives. It can also help you to identify places you could save money.

Figure Out a List of Trade-offs You’re Willing to Make

If saving money sounds unappealing because you think you’ll have to cut out things you enjoy, we’re here to tell you that swaps can be even more effective at helping you save than eliminating something completely. Search for opportunities to replace expensive options with cheaper or free alternatives.

Finding trade-offs that won’t feel like a significant sacrifice is key. Find another way to save if giving up your daily Sbux run feels like a punishment. For example, you could pack your lunch on those days or have breakfast at home instead of buying a breakfast sandwich.

Simple compromises include bringing your own study snacks rather than purchasing them from the cafeteria, biking or carpooling instead of using an Uber or Lyft, and organizing a date night where you and your significant other prepare dinner at home as opposed to going out to eat.

Spend Smart

You are not required to spend alone when you spend. Wherever possible, consider splitting expenses with your friends or siblings, whether they be for magazines, outings, books, or other things. By dividing the things you both want, you can capitalize on any shared interests you have.

As many coupons and gift cards as you can also be collected. You may freely resell gift cards that you receive if they are for items you don’t want to purchase. They can be sold on gift marketplaces like Raise for a fee.

Find a Part-time Job

One of the easiest ways to save more money is simply to make more money, so getting a part-time job is worth considering. Ask your parents to check to see if anyone in your community is looking for a babysitter, a lawnmower, a tutor, or a car washer if you aren’t yet old enough to get a job at a nearby restaurant, coffee shop, camp, or store.

You might also look into paid internships, which give you the chance to gain experience in a field while also earning extra money.

Take Advantage of Student Discounts

Your student ID can be so much more than just a card with a less-than-flattering picture of yourself, which is another concept you may not have given much thought to. According to Seventeen Magazine, you can use it to save up to 10% at stores like Urban Outfitters, Charlotte Russe, and some of your other favorite shops.

Getting all the discounts you can make saving a whole lot easier, and ensures you can put more of what you make in a safe place until you need it. Asking about student specials and discounts wherever you go would also be a good idea. Even though some companies may not publicly advertise their student discounts, they would be more than happy to give them to you if you asked.

Explore Platforms That Let You Buy and Sell Items Secondhand

Apps like Poshmark, Mercari, eBay, and Depop allow you to sustainably sell items that you haven’t reached for in a while by ensuring that they go directly to a new home, and make a little extra cash on the side while doing it.

Poshmark seller Emma Coffey tells Seventeen that she’s been selling on the clothing app since she was 13 years old to help grow her savings and earn extra spending money while in school. “I made sure to block off time between classes and during the summers to list things that I knew were in style, would sell quickly, and would fetch a high price. Plus, it’s helping me gain experience to pursue a career in fashion,” Coffey shares.

Additionally, these marketplaces are fantastic places to buy used items, which is more cost-effective and better for the environment. Those designer sneakers you’ve been eyeing? On Poshmark or eBay, you might be able to get a pair that is barely worn for half off.

Conclusion: Save Money as a Teenager

Saving money when you’re a teenager is challenging, especially if you don’t yet have the necessary abilities to succeed in the workforce. It’s also tough when you have friends who are out buying new clothes and going on weekend trips.

You’ll be more likely to start saving if you take steps today to advance your financial objectives. When your objective is within reach, you’ll be more motivated to put in the effort to save.

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