“You need to save for college!” “Set money aside to save up for a car!” “Keep your eyes on the prize!” But how do you save for the future when the present is happening right now? Your friends are buying new clothes, the latest games, awesome shoes. It’s no fun being the only one who saves all their money for years. So don’t save all your money. You can enjoy the now and also prepare for the days to come by learning how to save money as a teen.
If you’re old enough to get a job, which is 14 and up in Arizona, then you can start at a few hours a week. There are other ways to make money if you don’t have time for a regular job: an allowance from your parents, tutoring, babysitting, selling a craft you’re good at, and anything else an entrepreneur like yourself can think of. Once you know how much money you’ll have to work with, you can now plan a budget. If you don’t already have one, it’s also a good time to open a teen bank account that will cater to the needs of your age group.
Start by figuring out what your long-term goals are, like college tuition, a down payment on a car, or a road trip after graduating high school. Do you need to save up $5,000 for your first semester? $2,000 for a car’s down payment? $500 for souvenirs and food on your trip? Add it into your budget. Depending on how much money you make, you could decide to set aside a specific number like $50 a week, or a percentage like 60% of your paycheck. That will guarantee that no matter what, you’re saving regularly. This is the key to teenage money management.
This is the best way to learn how to save money as a teenager. Getting into this good habit will help you greatly in the long run, setting the stage for a successful future. Anything left over after you add to your savings account is yours to spend as you wish. Being responsible is rarely considered to be fun, but now you can be both! Enjoy each day as it comes while knowing that you’re also ahead of the game.
Prepare for your future with a Future Funders account at SunWest. Save more with a rate of 3.00% on the first $1,000 deposited. You’ll also gain access to contests and lessons created to give you a boost in your financial education!
February 22, 2021
Published by SunWest Credit Union
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