brown money bag with yellow dollar coins all around in article reasons to save money as a teen

13 Reasons to Save Money as a Teenager

Your goal as a teenager may be to have as much fun as possible. Of course, that can get expensive but it doesn’t mean that you should spend all your money.

There are many ways to save money and still have a good time, but have you thought about the reasons to save money as a teenager?

MarketingVOX and Rand Youth Poll did a survey of 8,000 teenagers and found that only 38% of them were saving some money. Out of these, only 22% had managed to increase their savings from the previous year.

This tells us that a lot more teenagers need to be educated on the power of saving so here are 13 reasons to save money as a teenager.

Reasons Why Students Should Save Money

1.     Get a Head Start on Your Future

You may be getting money from allowances or earning from a part-time job, and the best thing about it is that you hardly have any responsibilities. You’re literally at liberty to use as much of your money for yourself as you like.

This can change very quickly as you get older and bills start to accumulate. You are at a great time in your life to give yourself a head start in your journey to building wealth. Saving now may save you struggles down the road.

2.     Survival

Life requires certain elements. Food, shelter, clothing, and medical costs can add up very quickly. If your parents are covering the costs now, perhaps it’s time to consider that they will not forever. Starting to save money for these necessities will make life easier down the road.

3.     Avoid the Trouble of College Debt

For many college students, paying tuition and living expenses are stressful. Factor in student loans, credit card debt, and multiple jobs to pay them back, and life can really start to suck. Consider getting a head start to avoid these headaches and only worry about having fun and getting good grades when in college.

4.     Retirement May Be Closer Than You Think

Believe it or not, you’re not too young to start to think about retirement. Starting to build wealth early may allow you the opportunity to retire earlier than you’d ever imagined.

There are many variables that will change the trajectory of your life, allow a savings account to be a positive one. The earlier you learn to save the earlier you’ll get to financial freedom.

5.     Investment Power

Saving money allows you to make investments that will grow over time. I can’t say it enough. The earlier you start the better it will be for you. Warren Buffet, one of the wealthiest men in the world, started investing when he was 11 years old!

Technically, he wasn’t even a teenager yet. That worked out very well for him. Having savings allows you the opportunity to learn to invest by actually doing it. Start investing as a teen and one day you’ll be very happy you did.

6.     Financial Independence

There is no better feeling than being able to do what you want when you want. Having the money to do these things is a big factor. Saving money when you don’t need to spend it will allow you to spend money when you want to.

Not having to ask anybody for permission gives you the freedom that will allow you to feel free with much less pressure. Just imagine wanting to go on that date and not having to worry about paying for it…

7.     Help those Around You

Giving and helping allow us to feel fulfilled. Watching others struggle is not a great feeling and having the ability to help somebody could solve this problem.

Whether it’s supporting your parents with bills or helping your sibling buy lunch, being able to support your friends and family may bring you happiness you never knew existed.

8.     Control of Your Life

Do you think it’s time to move outGo on a trip? When you have money saved, these are the decisions that you’ll be able to make. You can decide how you want to spend your money.

Not having to rely on others to make decisions for you gives you the control to try new things. Perhaps you want to start a business and don’t want to risk other people’s money. Having a savings account will allow you to take control of the decisions you have to make.

9.     Less Debt = Less Interest

Not having debt means that you’ll pay less interest from loans. Not owing money is a saving in itself. By not having debt you can decide if you want to take on loans, such as student loans, or if you want to pay with your own money.

Even getting a head start on a big purchase such as tuition will allow you to pay off any outstanding money faster as your amount will be less and will not compound as long. There’s a difference between good debt and bad debt, but not having to take on more debt is a good thing.

10.  Financial Literacy

There’s really no better way to learn financial literacy than by practicing. Saving your money, budgeting, and investing will be the difference in your financial future.

Learning early will allow you to make mistakes when they are less likely to hurt and will set you up with a plan that you can improve. Practice saving, develop a budget, then do some investing. You’ll only grow with your experiences as will your bank account.

11.  Money Management Skills

Saving money is a skill in itself. Learning and understanding the basics of money management can transfer to many aspects of your life and career. Most establishments would love to have employees that can save them money and who are aware of spending.

Not overspending will not only create less stress for you, but it will also give you a solid foundation of skills you can apply to other areas. Learning how to manage money when you’re young will give you a major advantage later in life.

12.  Avoid Extra Work

Wouldn’t it be nice to not have to work two jobs? Or not have to take on the nightshift for those extra few dollars? Taking care of your money and not spending unnecessarily may allow you to put less pressure on yourself in work decisions.

Without pressure, our minds are more rested, which leads to more creativity… etc. Get out of extra work by saving early.

13.  Buy a Car

Getting around is fun. Getting around in your own vehicle is more fun. Convenience and style come to mind, but there are many reasons that purchasing a car may be your goal.

Cars are not cheap to purchase and they are definitely not cheap to maintain. Even if you plan to get a loan, you will most likely need a down payment to get going. At the end of the day, you will need money to buy a car and savings will get you there.

Saving money can seem difficult when you’re a teenager. Whether it’s with a part-time job, allowance, or just gifts, there are many reasons to save money as a teenager and many small things you can do to start saving now.

Create the right mindset, understand the benefits, and start putting away some money.

By: Robert Puharich | October 17, 2021 |

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