Teen years are perhaps the most important years of life. Teen years decide who you will go on to become as a person. It’s that time when your inner makeup is taking shape. Amid those years, you develop a psyche which remains more or less the same for the most part of your life. You either become a conformist or a rebellious person amid those years.
They say that whatever good habits you inculcate in your teen years, stay with you for a lifetime. All of us are more than acquainted with the worldly wisdom that revolves around the importance of teen years. But only a few shed light on the importance of saving money as a teenager.
Savings are the lifeblood of any personal finance strategy. If you have mastered the art of provisioning some percent of your income for future use, you will have a less bumpy ride compared to those of spendthrifts.
The idea of saving amid teen years may sound like abandoning the world and seeking refuge atop a deserted hill. It becomes practically impossible for teens to give up showing off their riches and possessions when everyone around is bragging about living the dream (at least faking to be living so).
Saving at an early stage would go a long way in shielding you against unforeseen troubles such as a recession, saturation point of the industry in which you work, health calamities and other contingencies.
Not only this, savings has numerous other virtues. It is like a chassis on which your wagon of finances is built. It is the launch pad which lets you take off for your financial goals. Here’s how to save money as a teenager for a brighter and happier tomorrow:-
1. Have a Dedicated Savings Account
If you are privileged enough, it’s likely that you won’t be working full time in your teens. When you have a separate savings account, you can ditch impulse buying.
Moreover, instead of falling for gizmos and gadgets which are the word on the streets, you can build up your savings for something which has more utility, for instance, your first car or saving something up for the college.
Not only will the savings account keep you from making a hole in your pocket but it will help you achieve your financial goals. Moreover, you can also grow your savings with the right Saving’s account.
CIT Bank is one of the best online banks with no chargeable fees and the highest yielding APRs. Even though there is a limitation to the service that the bank offers, CIT Bank is the popular choice among young people to save and grow their money.
2. Separate Dispensable Income from Savings
You savings doesn’t give you the right to blow it all up when you wish. It would be outright stupidity to do so. It’s like building fortified walls around your empire and letting the gates open for an adversary to enter your land.
You have got to weigh your options and prioritize your needs as urgent and important. Besides, you also have to classify your wants as genuine and luxury and contrast it out against your overall financial complexion. The whole purpose of starting to save from an early age is to shield from the affliction of debt.
Buying things whose charm is like a flash in the pan is often the root cause of getting immersed into debt. So, it makes much more sense to figure out what works for you. You should always keep a part of savings intact.
3. Keep Track of where you have Spent your Money
You got a paycheck from summer internship and WHAM! It went into the orbit. The biggest challenge with folks who live paycheck to paycheck is that they can’t keep track of how much they are spending and on what verticals.
If you are into smoking, you can pretty much spend up to $300 on cigarettes even though you face an existential crisis at the end of each month. Keeping track of your spending patterns not only stops you from spending money on worthless things but also instigates you to strategize your savings.
Trim is one such app which helps you keep track of your finances besides renegotiating your Comast and cell phone bills. It helps you make informed personal finance choices with the help of statistics that it produces at your disposal.
With Trim, you would not only learn how much you are spending on what all verticals, but you would also provision some money from your earnings for long term financial goals.
4. Invest your Money
Give glad tidings to the natives of California, New Jersey, South Dakota, Oklahoma and Virginia, the District of Columbia, Kentucky, Louisiana, Maine, Michigan, and Nevada. For people in these states can enter into a legal agreement for trading in stock at the age of 18.
You are not the only to be puzzled up right now. This piece was about how to save money as a teenager and where did investment pop up from? Well, Investing or should we say passive investing is also a form of enriching the savings.
Investing as a beginner can be tough as there are quite a few barriers (most psychological and not technical) to break through. As a person who has just reached an age to enter into a contract that is enforceable by law, it’s natural that you would have your reservations about investing.
Betterment, an AI-based platform lets you invest with as little as $1000. Moreover, the Betterment guides you through the investing process by building diversified portfolios for you and helping you fetch the maximum possible marketing returns over the long haul.
5. Spend Smart – Use Gift Cards and Coupons
Gift cards aren’t hard to find these days. They fetch you decent discounts on the items of daily use. You just have to strategize your purchasing and stock a few commodities beforehand. Even if you haven’t run out of those essentials, you can avail the discounts through gift cards and save them up for the next month.
Here’s our Amazon gift card for you worth $500 for free. (You can thank us later)
If you stumble across gift cards which are easily available but slightly offbeat for you, grab hold of it at the earliest and sell it off at Cardpool.
6. Make Coupons a Way of your Life
Coupons appeal to savvy creatures, who want to make the most out of present opportunities and buy products and services at discounted prices.
Folks can always juggle through a handful of coupon sites before making purchases. Even if you won’t find a coupon for exactly the same thing on which you have set your eyes on, you will find a huge discount on a similar product or a service.
Here are a few coupon sites to browse through for saving BIG on things you need on a daily basis:-
Swagbucks is the best site for online rewards, a savvy mix of popular ways of making money online. You can earn rewards for shopping, searching via its search engine, watching advertisement videos, etc. Swagbucks gives you coupons to avail discount at Amazon store while adding SBs to your tally.
The most versatile coupon-based site of all. It offers exciting discounts on restaurants, apparels, travel, accommodations, theatres, spas and much more. Groupon buck is the indigenous currency of the site and you get to earn Groupon bucks for almost everything; from suggesting to friends to register on the site.
7. Encash your student ID card
Some of your favorite retail brands offer discounts to students for the most part of the year. Urban Outfitters and Charlotte Russe are a couple of them. The more discounts you get on things, the easier it becomes to improvise on savings.
As a student, you can take up a lot of freelancing work via Upwork. This will help you utilize your free time provided that you are willing to ditch the crowd at parties.
Moreover, it will polish your skills and give you a glimpse of the working world; thus bridging the gap between academia and the industry. This way you can save as a teenager.