Tips for Teens on How to Save Money

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Parents can provide their teens with a valuable life skill by teaching them how to save money. This skill doesn't always come naturally---to either teens or adults. The temptation for teens---and adults---often is to spend money as soon as it's earned. Fortunately, teens can take steps to develop money-saving skills that will serve them well once they reach adulthood.

Commit To Saving

  • The Motley Fool financial website recommends teens practice a simple money-saving trick: save before spending. This means that every time a teen comes into money, whether from a weekly allowance, baby-sitting or a part-time job, the teen should set aside a portion of the dollars as savings. They should then put that money into the bank. This should be done before teens spend any of the dollars they earn.

Open A Checking Account

  • Teens who open a checking account will often be more motivated to save more money, according to financial website Money Instructor. A checking account gives them an out-of-sight place to put their money. By opening a checking account, teens can also learn about interest, which might inspire them to save even more money.

Earn Matching Grants From Mom And Dad

  • The Motley Fool website recommends teens ask their parents to match every dollar they save. So, if a teen saves $10 during the week, his parents would provide him with a matching $10. Not all parents will go for this, of course, but some parents might match half the teen's savings. Instead of providing a matching $10, they might give $5.

Have a Goal

  • Teens tend to save more money when they have a goal, according to the Kiplinger.com article "Getting Teens to Save (Without Nagging)." Perhaps they want to save $100 for a trip next summer or $150 for a new iPod. Maybe they even want to start socking away money to help pay for college. It's easier for most people to save their dollars if they have a purpose for their saving, according to the article.

References

  • Photo Credit Smiling teens image by Monika 3 Steps Ahead from Fotolia.com
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