Help teens learn the importance of saving and budgeting with these smart money tips. Teach them to make wise financial decisions for a secure future.

Top Money Saving Tips for Teens: How to Save and Budget Wisely

Managing money as a teenager is pretty important, it sets the foundation for how we take charge of our own financial independence and responsibility later on in adulthood. Good money habits earlier in your life teach you to make smarter spending decisions and smart saving, budgeting, and planning for the future later in life.

If you can handle an income from a part-time job or become good at tracking expenses, you can use that to kick start becoming good at managing your personal money—you will never need to worry about making mistakes you know how to do and worrying about how to do it anymore. This article will teach you how to do just that.

Prepare financial goals

Teens can set a variety of financial goals, from saving for, say, a new phone or even a car to building an emergency fund or saving for college. Starting to save is a great way of doing so—you can set specific goals regarding saving a certain amount of money (e.g. $50 a month) or limiting impulse spending. 

To ensure making those goals achievable, divide the goals into smaller steps and create a timeline for achieving each milestone.

Create a budget

As a teenager, creating a budget might seem hard and challenging at first, but once you get the hang of it, it will come naturally. Having a budget as early as now will help you be more responsible and financially aware in the future. Just imagine the benefit of starting as a teenager and then transitioning into an adult as you budget will make you a master at doing it in the long run.

Starting a budget as a young adult can tend to be shallow, so beware of that. Remember to always allocate funds for your essentials and, of course, your wants. It is important to still enjoy your youth aside from being financially responsible because it will build your foundation as an adult.

Track expenses

One of the basics of being financially responsible is tracking all of your expenses. Start by documenting all of your expenses, as well as both your wants and needs. Keep a list of all of these, and make sure that you are on track with the budget you set for yourself. Remember that sticking to it will make you avoid temptations in the future and will create trust between you and yourself.

Save money on everyday expenses

Of course, being a teenager, you still have your expenses. Despite them being small, you still have responsibilities you pay for from your allowance your parents gave you or from your part-time job wage. Learn your priorities and maintain your eye on them. Make sure that you do not lose track of your essentials so that you do not have to run out of money. Being young does not excuse you from being financially irresponsible. Start young, but again, still learn to enjoy while doing so.

Earn money through part-time jobs or side hustles

Companies and small businesses understand that many teenagers do not have the privilege of having their own money, so many of them hire young ones. Some of them know the struggles of budgeting as part of the youth, so they provide opportunities. Earning money as a teenager will help you understand the value of money as you work hard for every penny. You earn what you receive, which makes for good practice.

If you have the privilege of having parents who can support you, you can start small businesses like a lemonade stand or selling art. Nonetheless, if not, you can look at fast food chains or coffee shops that will train you for challenging yet fulfilling jobs. Of course, learn to manage your time effectively while working.

Ace your teenage life

Earning money and budgeting as a young person in today’s economy is a challenging feat. However, no one is ever ready, and nothing really prepares anyone for the challenges of growing up. That’s why these pieces of advice can be very helpful in navigating life as a learning teen.

Nonetheless, despite all the budgeting, since teenagers usually earn less than adults, there is always a tendency to be in a pinch and get caught in a financial crisis. That’s why, as Australia’s leading wage advance app, Wagetap can lend a helping hand to teens by providing them with the opportunity to access their pay early. Download the app on the App Store or Google Play to have a safety net just in case you need it.

For additional help in improving your spending habits, you can always download Wagetap. It is a leading wage advance and bill split app that allows you to access your pay early. Emergencies can always happen and Wagetap can help you handle life's unexpected expenses.