Whether you're looking to get a new phone, save money for a holiday with your friends, or even buy your first car, saving money as a teenager is hard. Schools don't teach you much about how to save money. And sorting out your personal finances and starting to save money can feel overwhelming if it’s your first time.
But saving money towards a goal makes achieving it all that more rewarding. So here's our best advice on how you can save money as a teenager. 💰
1. Start a savings account
Even if you don't have much money to start with, setting aside money and putting it into savings account can be a good way to start saving, even if it’s a small amount at a time.
Adding money to a savings account regularly can also help you get into better spending habits and over time you'll see your money grow.
Opening a savings account for the first time can be overwhelming. Find out more about the different kinds of savings account.
It’s also useful to understand interest before opening a savings account. Interest is what a bank pays you for keeping a certain amount of money in your savings account to incentivise you to deposit. But understanding interest and interest rates can be tricky. Here's our Big Guide to Interest rates and what it all means.
You can open a savings account with Monzo. If you want to start saving, check out our savings options today.
2. Get a part-time job if you can
A part-time job is a great way to gain work experience, as well as earning some extra cash.
Over time, even small part-time jobs like babysitting or dog walking for your neighbours can help you reach your savings goal.
If you're worried about keeping up with school work during school time, why not think about getting a summer job instead?
3. Start budgeting
Creating a budget can help you save money so that you reach your savings goal faster.
To start a budget, first of all you need to calculate a savings goal.
Next, try separating spending money from savings. It can be very tempting to dip into your savings account when all of your friends are going out and you want to join them!
To help you stick to your savings goals, if you open a Savings Pot with Monzo you have the choice to lock your pot until a date you chose. Find out more about locked Savings Pots with Monzo.
Once you've decided how much spending money you need overall, work out all the things you might want to spend money on and how much you want to spend on each one.
This is so you can make sure you don’t go over your spending money budget.
Creating a budget makes it easier to save money over time and it gives you more control over your money. Here’s more on how to create a budget (and actually stick to it!).
If you’re looking for an easy way to start budgeting, download Monzo.
4. Save money by creating saving habits
Starting to save money for the first time can be daunting. But starting to save money is definitely the hardest part. Some scientists say that it takes 66 days to form a new habit. But creating good saving habits while you're a teenager is often important for later in life when you're earning more money.
Here's our best advice on how to kick off saving habits:
1. Make savings goals within reach
Having a savings goal that's unrealistic makes saving feel much harder than it has to be! Make sure your savings goal is attainable and realistic - that way you have a better chance of reaching it!
2. Don't be hard on yourself if you mess up
Everyone is guilty of making impulse purchases! The important thing is to not get disheartened and to get back on track. Readjust your saving goals and get back on it!
3. Enjoy what you've saved for!
Once all of your hard work has paid off and you've reached your savings goal... make sure you enjoy whatever you've worked hard to save for! There's nothing more rewarding than knowing that your hard work has contributed to what you've saved for, whether it's a holiday or going out with friends or a new phone.
If you want to start saving, check out our savings options today.💰