As a teenager, there are many reasons to start saving. Saving can give us the means to make a big purchase later down the line, help pay for college, or even keep us afloat during emergencies that impact us financially. Getting into the practice of forming good saving habits now will surely help you in the long run.
That being said, here are four steps you can take to save money:
Create clear financial goals. This is the place to start because knowing your financial goals is an important foundation when it comes to saving. First, having these goals can give you a sense of direction. Additionally, these goals will also serve as a guide for other decisions you’ll make (like how much to save each month or if another stream of income is needed). Financial goal Example: I will save $250 each month in order to cover at least 50% of my room and board cost next year.
Make and follow a simple budget. A budget is a spending plan, usually based on your expenses, income, and savings. It is also a way to manage your money. To create your budget, identify how much money you spend monthly (expenses), how much money you earn monthly (income), and the money you want to save. Any “extra” money left can be used to give you some flexibility in your spending, should anything come up. To watch our Instagram reel on a step-by-step monthly budget guide, click here.
Open a savings account. Taking this step allows you to separate your everyday spending money and the money you want to put aside/save. If all the money is stored in one place (i.e. checking account) it can become easy to constantly spend money you should be saving.
Do your best to remain consistent. Being consistent is an important factor in reaching your financial goals. If you are not consistent, your progress may be slower or delayed. Remind yourself of your goals, and use them as motivation. Remember your “why.”
I hope these tips were helpful! Below are additional resources to learn more about saving, budgeting, and being consistent. Check them out!
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