How To Start Saving Money As A Teenager
Jo Larsen

As a teenager, thinking ahead to the future and what you will need when the time comes can be overwhelming. It is important that you begin saving money today so that your future self will thank you later! Saving money as a teen may seem difficult since most of us don’t have our own income or bills to pay.

However, there are many ways for teenagers to start saving money without taking drastic measures like getting a job or cutting back on spending unnecessarily. Learn how to start saving money as a Teenager and this skill will stay with you for life.

In this post, we’ll explore some practical tips and tricks on how to save money that even teens with little to no disposable income can use to make lasting changes in their financial lives!

How Much Money Should You Save Each Month As A Teenager?

As a teenager, it can be hard to think about saving money when other pressing things are on your radar. It’s natural to focus more on fun experiences and the future than building up a savings account, but putting aside even small amounts each month can make all the difference.

The key is to find the balance that works for you so that your savings goals don’t weigh too heavily on your daily finances. Start small by setting aside 10% of what you earn and work towards building simple habits that help you reach your financial goals without creating added stress.

When it comes to saving, get creative and figure out how to stash away what matters to you now for an even brighter future.

Why Is It Important To Learn How To Start Saving Money As A Teenager Early in Life?

Saving early on in life is one of the most important habits that an individual can develop. Starting when you’re young gives you a huge advantage; compound interest over time means that your money will grow with much less effort than if you waited until later to begin saving.

Additionally, saving early allows individuals to take risks they may not have had the opportunity to take if they’re limited because of lack of funds. By creating an emergency fund that is separate from their day-to-day accounts and having money saved for later, individuals ensure financial security in their future and have greater control over long-term decisions.

Some Easy Ways For Teenagers To Start Saving Money 

Saving money is an important skill to develop early on, especially in our current society where it’s so easy to overspend. As a teenager, there are a few methods you can use to start building your savings and diversifying your financial portfolio. Here are some easy ways for teenagers to start saving money.

Piggy Bank for Adults

Start A Piggy Bank:

For the most basic way to start saving, a piggy bank is a great option. This way, you can save your loose change and eventually add up to a big amount! When your piggy bank is full, it’s time to deposit the money into a savings account.

This way you can start earning interest on the amount and eventually reach your financial goals. Savings accounts come in all shapes and sizes so you can find one that fits your needs. Just be sure to shop around for the best rates possible!

Open A Savings Account:

If you’re interested in saving more serious amounts of money, opening a savings account at your local bank or credit union is the way to go. Most accounts require a minimum deposit, but you can build your savings from there and eventually make money through interest.

Compound interest can be a teenager’s closest ally. When interest-earning savings accounts reinvest earned interest, they utilize compound interest to create profound wealth.

Over time, your account’s interest rate growth will compound, turning your modest deposit into a considerable sum. The longer you leave the money untouched, the more you will gain.

Take On A Part-Time Job:

If you have the time and energy, taking on a part-time job is one of the best ways to start building savings as a teenager. This can be anything from a summer job to delivering food orders after school. You can also start your own business, like a tutoring service or small online store.

Some ideas for making extra money as a teenager include:

Whatever you choose, it’s important to set some of your earnings aside each month so that you can build a nest egg for the future. Being responsible with money now will help you lay the groundwork for success in adulthood.

It’s also worth considering taking advantage of any employer benefits available to you. Maybe the store you work for offers a discount or you can get reimbursed for training or certifications. Not only could this help you save money, but it could also be beneficial to your future career prospects.

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Keep track of your spending

Keep a record of your purchases in an app or notebook. This will help you to track how much money you are spending and what your biggest expenses are. If you are spending too much on video games each month, you can make a conscious effort to reduce this expense and put the money towards your savings instead.

Make a budget

Sit down and work out how much money you have coming in each month, such as pocket money or earnings from a part-time job. Then, decide how much money you will need to cover essential expenses like fun and transport. Any money left over should go towards your savings.

Find Discounts

Your student ID is more than just a card with an unflattering photo. It can also earn you discounts of up to 20% at your favorite stores and restaurants. Don’t miss out on this opportunity to save some cash – take advantage of those student discounts!

As a student, it is always worth asking about discounts and deals whenever you are interested in purchasing something. Don’t be afraid to ask for discounts – businesses often won’t advertise their student discount programs, but may be more than willing to provide them if you inquire.

If a business doesn’t have a special program or offer specifically for students, they may still provide some type of discount.

You never know until you ask! Looking around online and word-of-mouth are great ways to locate special offers or deals that may not be widely advertised. Promotional codes or coupons found online can also help you save money on any purchase, so take the time to search them out before making any big purchases.


Once you’ve built up a bit of savings, it’s time to start investing! While investing can be intimidating, there are plenty of resources you can use to get started. Research index funds and ETFs, and look into apps like Acorns and Robinhood to get started.

By following these tips, you can start saving money and eventually begin making smart investments as a teenager. With the right strategies, you can build a strong financial portfolio for yourself and set yourself up for success.

work out how much money you have coming in each month
work out how much money you have coming in each month

Best Investment Options For Teenagers 

Teenagers are often overlooked when it comes to investing. Yet, they have the longest amount of time to benefit from the power of compound interest. The best investment options for teenagers include:

1. Roth IRA: 

A Roth IRA is a retirement account that allows you to make tax-free withdrawals when you reach retirement age. Contributions are made with after-tax money, which means that the investment gains are not taxed. The contributions are also flexible, allowing teenagers to make contributions as their income allows.

2. Mutual Funds: 

Mutual funds are a type of investment that pools money from a group of investors and invests it in stocks, bonds or other securities. This type of investment is ideal for teenagers because it offers a diversification of investments and professional management.

3. Exchange-Traded Funds (ETFs): 

ETFs are similar to mutual funds but trade on a stock exchange like stocks. This type of investment is great for teenagers because it has low expenses, which means more money for the teenager’s investment.

4. Stocks: 

Investing in stocks can be a great option for teenagers because it allows them to benefit from the potential for large returns but also carries the risk of potential losses. Before investing in stocks, it’s important for teenagers to do their research and understand the risks involved.

5. Savings Accounts: 

A savings account is a great way for teenagers to start building their wealth. Savings accounts are safe and secure, allowing teenagers to watch their money grow without the risks of other investments.

It’s important for teenagers to understand their risk tolerance and make investments accordingly. With the right investment strategy, teenagers can benefit from long-term returns and build a secure financial future.


A lot of people think that saving money is hard, but it doesn’t have to be! If you start small and make a plan, you’ll be surprised at how quickly your savings will grow. And remember, the sooner you start saving, the more time your money has to grow.

So what are you waiting for? Get started today and see how much you can save!

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