How to Save Money in High School
Saving money is no easy feat. Spending money also sounds like a lot more fun, and it kind of is.
As a teenager the thought of getting dollars in your bank account may seem overwhelming to start, but it takes just $1 to get the ball rolling and you may appreciate that good feeling you get when you have money in your account.
To answer “how to save money in high school” here are 5 tips to get you started.
How to Save Money for High School Students
1. Set Goals
You need to know what you’re saving for, and how much you’ll need to save per day, week, or month to get to your goal.
When you’re trying to save money, it’s not difficult to cave into temptation as you see something you like and don’t have a bigger vision. Let your goal push you and inspire you to keep saving.
You can break it down into installments or timelines, and have both short-term and long-term saving goals.
Short-term saving goals can be for things like:
- A gadget
- Gifts for your friends
- For an upcoming event such as prom
While long-term goals can be for things like:
- A car
- College funds (You’ll save yourself possibly years of debt repayment)
- Start-up capital- You could save some money to set up a business. Perhaps a simple online business is something you’re considering, or you may have bigger dreams.
There are numerous examples of people who have started their businesses young like Fred DeLuca who at 17 years old opened his Subway restaurant and more recently Caroline Bercaw and Isabel Bercaw, founders of ‘Da Bomb Bath Fizzers.’
2. Have a Budget
Creating a budget may be easy to do, but you need the discipline to follow it through.
When you have a budget you’re able to see what you spend your money on, where you may be overdoing it, or most importantly where you are wasting money.
Having a budget in writing will help you figure out how you can reduce spending so that you can save more money.
3. Automate Saving
The big goal is to avoid the temptation to spend your money so that instead you can save it. To help with that, you can automate the process.
If you’re getting a paycheck every month, or even bi-monthly, you can set up your account to automatically transfer funds to a savings or investment account.
To further clarify where your money is going, you could even break it down to have a percentage go to a car fund or university savings, or any other goal you may have set for yourself.
Having a nice amount of money in your chequing account can relay the message to yourself that the money is there for spending. Avoid that by automatically transferring it elsewhere.
If you don’t qualify for an account because of your age, you could explore setting up your savings account with your parent until you turn of age, usually 18. Many banks having savings accounts for students which give you a head start even when you’re young.
For those of you not working yet, if you’re getting an allowance every month, you could ask your parents to deposit part of it into your savings account or an investment tool.
4. Use your Student ID
When you use your Student ID for purchases, you can have the same things you’ve been buying but at a discounted price. That will give you some extra money to channel to savings.
Many stores offer discounts to students. Take it upon yourself to have your student ID with you when shopping, and ask if there are any discounts to be had.
5. Use Saving Tools
There are plenty of websites, apps, chrome extensions, and templates available to help teenagers manage their money.
Apps and extensions make it easier to monitor your progress, control your savings, and invest. Try an app like Rakuten that gives you cash back on purchases, or an extension such as Honey which automatically looks for savings when shopping online.
Budgeting tools are available online, as are downloadable budget templates.
Also, a simple Google search of an item you’re looking to purchase will often bring up a discount code, so don’t be afraid to use Google as your sidekick in saving as well as spending.
Where to Start with a Savings Plan
By asking yourself the important question of “how to save money in high school,” you’ve already started to get into the right mindset.
First you should understand the importance of saving, then come up with a strategy to get started. A savings plan doesn’t have to be huge, and it doesn’t have to control all your money, but understanding the principles of saving and just getting started can be a big boost to your overall financial well-being.
A bank is a great place to get started with a savings account, don’t be afraid to ask lots of questions.
With a little bit of preparation, a slight time investment, and a good goal, you can be on your way to saving money with a great plan.
By: Robert Puharich | September 28, 2021 |