4 Tips for Teens on How to Save Money

Understanding how to save money is an important life skill for teens and as parents, they need to know how to teach and encourage their children to save money when they are young. This skill does not come with nature, as a matter of fact, the nature of both teens and adults is just to spend the money as soon as they get some in hand. Luckily, teens can take steps by steps and develop a good money saving habit that can serve them once they become mature.

1. Commit to saving is the first step.

Suggested by the Motley Food Financial website, teens can learn the skill of saving money by a simple practice—save before spending. The meaning of this practice is that a teen needs to save a portion of the money that comes to him/her each week. The money can be regular allowance, baby-sitting or part-time job earnings, etc. Saving a fixed portion of each fortune they get and encourage them to spend after certain times of saving.

2. A checking account or saving account is a must!

Based on the report of the Financial Money Instructor website, teenagers who have checking or saving accounts are much more motivated to save constantly. The reason is putting the money into the real bank account instead of a piggybank makes the money out of teens’ sight, hence they will not thinking about how to spend them all the time. In addition, teens can learn more about interests, which inspires teens to have more savings.

3. Parents can provide matching grants for the saving.

This is an interesting and sometimes an effective way of encouraging teens to save more money. Some parents match the amount that their kids save, for example, if a teen saves $20 this week, then finally he gets $40 in total. Of course, this way may be not possible for some families, but at least you can learn the idea and adjust the ratio of matching a little lower to like half or quarter.

4. Set a goal for the saving.

It is easier for a teen to save more money if a specific goal is set, as recommended by the article “Getting Teens to Save (Without Nagging).” From Kiplinger.com. For example, if a teen wants to travel next some, she may plan and estimate the amount, like $200, so that she can keep herself in mind that each penny saved is for this journey. Or another teen wants a new iPod, he can tell himself to save for half a year only for the new iPod. By setting a goal or have a purpose, it becomes easier for most people to save.

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