As a teenager, no matter how much you are earning, it is difficult to save money. It becomes even harder if you are doing a part-time job. Teenage is an age when you have friends and you usually go out and spend money on buying new clothes, eating at malls and going out on weekends. So if you are a teenager you are in a powerful position and more likely to spend all your earnings. But it is not impossible to save a portion of your paycheck.
As a teenager, you may have some dreams or big goals to achieve later in your life. It may be your first car or your own house. Saving money will be helpful for the rest of your life to achieve all your goals. Here are some tips that can help teenagers to start saving money from a part-time job.
Saving accounts
If you are a teenager and doing a part-time job with low income, you might feel disappointed and demotivated that you are unable to save money. No matter how big or small your earning is you can save a part of it. Either it is $10 or $100 if you start saving it will help you over a long time. You must create a saving plan or budget and start working on it and always stick to it. The best way to keep saving money is the saving account. Continuously and regularly contributing to your saving account will help you in better financial management and encourages you to develop good spending habits.
Keep an eye on spending
Have to ever feel like where is all my money going? It happens because we don’t keep track of our purchases. Mostly we don’t take into account the small spending and purchases which later pile up a big amount. If you really want to save your money in your teenage you must keep a check on your spending. If you keep a note on your purchases you will be better able to save your money. Keep all the receipts with you and write down all of your purchases you will be well aware that where all of your dollars are going and will be more careful next time while spending money.
Don’t spend savings until emergency You may have started saving money and saved some in your saving account but there are possibilities that you feel tempted towards that money when you are out of cash. Don’t touch that money for your usual and unnecessary purchasing.
The money you have saved is only for emergency and unexpected situation. For such purpose, you can open a transaction account or direct deposit account which can only be accessed on demand. If an unexpected situation happens and you are out of money you can go for a loan from low-interest loan company such as Instant Loan
Time is money
No matter how much you are earning what matters is time. With the passage of time, your money will multiply and you will get many if it. If you have $1000 at the end of a summer job and you invest this money on 10% rate of return. After 50 years you will get $11,467 and if you want them after 30 years you will get $4321. This is just a small amount but you can save much more. Imagine how your money will grow. So start saving now and let the time work for you.
Understand the power of student ID
Student ID is much more than just a card. You can get a large number of discounts in many places like a 10% discount on Amazon prime, Charlotte Russe, Urban Outfitters, and many other shops. In addition, you can get discounts at many other places like tickets to concerts, museum, restaurants, groceries, hotels, movies, clothing, newspaper and magazine subscriptions, electronics and a lot more. Anywhere you go just ask if there is a student discount or deal. Some of the businesses don’t openly announce the student discounts but they feel really happy to give discounts to students if asked. If you get these discounts it would be much easier or you to save money until you really need it.
Do a summer job
To save more a simple solution is to earn more. Instead of sitting idle and wasting time in your summer holidays it is perfect to do some job to increase your earning. With an additional job in the summer holidays you can replenish your account until you move back to school. It can also help you to get experience which will later help you in getting a good job with high paychecks.
Spend smartly
It is not always necessary to spend more or not at all for your needs. It is important to spend smart. Whenever you spend money it is not necessary to spend alone. You can share the purchasing cost with your friends or siblings where possible. You can buy magazines, books, go on trips and many more. You should avoid impulse buying and purchase on sales and discounts. Paying full and in cash can save from heavy interests and so on. You just need to think smarter.
Develop saving habits
As a teenager developing a saving habit will help in the future for the rest of your life. It is always not too early to start saving money. The more the years pass by the more your savings will be. If you develop a saving habit now this habit will go with you forever. You can put every dollar into a saving account whether you get it from a job bonus, allowance or a gift. With a saving habit developed at the very start, you can later achieve big financial goals and you will be happy with your earlier decisions.
Teenage is the best age to start saving because you don’t have a lot of expenses as you don’t have many burdens. When the time passes the expenses will increase and you don’t have even 10% of your money to save. If you start saving much more at an early age it would not be hard to make a big amount at a later stage in your life.