Benefits of Saving Habits

Teenagers often find it very hard to hold onto cash, and they don’t even consider saving it. The fact that their friends are going around spending money on things they don’t really need but want doesn’t help either. Research says teens hardly ever spend smart, which indicates a dire need to sit down and think about your future. By saving money at a young age you’re setting yourself up for a safe and secure financial future. Life can be very unpredictable at times so you should always have a backup. And there’s no reason not to put some aside and save a little, even when you’re young. Here are four ways to save in your teens and be happy about spending later on:

1. Keep Track Of Your Spending

By keeping a spending diary, you can determine your spending patterns, how to save more money and even become a smarter shopper. Look back each week and see where your money’s going. You need to be very honest with yourself though – was the money spent more on day-to-day needs, or on wants and desires? Keep a separate section for each and see where your money’s ending up. Adjust accordingly. Your spending diary can help you plan ahead as well. For example, if you find yourself spending $10 or more each week on Subway after soccer practice, start packing your post-session meals and save the money instead.

2. Start Saving Before You Spend

Whatever money you’re earning at the moment, rather than rushing out to spend it all at the mall with your friends, keep it to the side for savings. Let’s say you’re making about $45 each week, and you know ahead of time you may need $20 for bare necessities such as lunch or phone credit. The moment you get paid, put $15 aside in preparation. Do this consistently and you’ll have a regular saving habit before you know it.

3. Get “The Folks” In On It

You may disagree with asking your parents for a little financial intervention, but it’s worth a try. Let your parents know you want to start saving early so you can have money in your pocket on a rainy day, or even contribute it toward your college fund. Ask them to “match” your savings by making small contributions.For instance, if you’re successfully able to save about $30 each month, you can park it into a savings account and ask your parents to match those savings by adding another $30. Some parents really appreciate their kids practicing good money saving methods from an early age, so you never know what reaction you might get. Go for it.