Are you a teenager that is searching for ways to save money? There are a lot of reasons why you want to save. It might be because you want to buy a new gadget, or a new wardrobe. Whatever the reason, saving will help you prepare for adulthood and be responsible for your finances. Some of the advantages of saving include stored funds for emergencies, compound interest, and financial discipline.
Whether you are getting money from your allowance or from your summer job, you should start saving a portion of it as early as possible. You should learn to allocate at least 30 percent of your finances to savings, 30 percent to contributing to expenses inside the house, and 40 percent for having fun.
Here are some of the tips that you can do in order to save:
Practice setting a financial goal. Having a goal helps not only in motivation but also learning to prioritize the important things that you really need. Before going to the grocery store, write the essential items that you only need to buy. This way, you will have more discipline in spending your hard-earned money. Instead of having your parents spend for the things that you want to buy, you can use your own money to buy it. Aside from your parents saving their hard-earned money, using your own money in buying things will bring you a sense of pride and achievement.
Get a summer job or a part-time job. If your parents only advise you to save, advising will not do much impact on how you spend your money. Getting a job early will help you to be critical about your spending. After all, you have invested your own time and energy on the job. You will definitely value your hard earned money this way. It is also helpful if you were trained when you were a child to earn your allowance by helping to do the household chores.
Practice spending less and saving more. Learn the difference between the essentials and the non-essential things. If you are going to work, you don’t need to spend $10 for a single meal. You can learn how to prepare home-made sandwiches. The sandwiches are healthier since you know what ingredients are included and you can also save more.
Keep track of your expenses. Write your expenses on a diary or download an application on your phone that can track your expenses. You will be able to see your expenses next month. You can also identify and remove the non-essential things from your budget.
The list just recommends some of the things that you can do to spend your hard-earned money as a teenager. You can read financial books, do an online research, or ask financial experts on other ways on how you can save.