10 Money-Saving Tips for Teens

If you’re a teenager, you might have more of a “live in the moment” outlook than a “plan for the future” one. If that’s the case, saving money might seem like something older people do, not a very young person like yourself.

However, saving money is important no matter what decade you were born in. But how do you save it when you may not have that much to begin with? Here are some practical tips geared specifically toward teenagers who want to learn how to start saving money—right now.

1. A Little Goes a Long Way

You might not believe this, but even the smallest amount of money saved can add up in the end.

For example, let’s say you earn $10/hour scooping ice cream 5 hours a week, making $200 in a month. Even if you put aside just $20 every month into a savings account, at the end of the year you’d have $240 at your fingertips!

Especially when you’re just learning to save money, the most important aspect is developing the habit of stashing away cash on a regular, consistent basis. Early on, the amount isn’t as important as the routine—so make it a point to put aside even just a little bit of your paycheck or allowance every month.

2. Set the Bar High—But Not Too High

When you’re just starting out learning to save, you should set savings goals, but make sure they’re realistic ones. Because if you set your goal too high and can’t reach it, you could quickly get discouraged. However, one way to set realistic, streamlined savings goals is through a Jeanne D’Arc StartStrong Goal Account.

With just a $5 deposit, you can open this account to save money for a specific purpose like buying a new electronic device or taking a road trip with friends. StartStrong Goal Accounts earn interest (also called an annual percentage yield or APY*), which means that Jeanne D’Arc adds money to the account at the end of each month, increasing your savings even more!

Plus, there are no monthly service fees from a StartStrong Goal Account, which means you can grow your funds faster.

3. Budgeting Basics

A key component of any successful savings plan is a budget. At this point, you might be scratching your head wondering, “What exactly is a budget?” A budget is a way to track how much available money you have based on your income (like your allowance, babysitting money, or the paycheck you get from a part-time job) and the expenses you pay, like dining out with friends or movie tickets.

For a teenager, a budget can be very simple and get the job done. It will help you manage your money so that you have enough cash on hand to make purchases but keep yourself in check so that you continue to save for future goals.

4. Beware of the Impulse Buy

An impulse buy is when you hastily purchase an item that you never intended to buy in the first place. Have you ever done that before? As a teenager, impulse buying is even more tempting because you’re constantly exposed to social media marketing that tries to influence you into throwing down your money for the latest “on-trend” product or service.

But stay strong! When you feel the temptation to impulse buy, try these tricks:

• Evaluate if it is a “want” or a “need” (it’s most likely a “want,” which means it’s not necessary)
• Calculate how many hours of work it will take to cover the purchase
• Walk away and consider the purchase again in a day or two; it either won’t seem as attractive or you’ll have determined solid reasons behind why you should buy it

Whether you’re an adult or a teenager, everyone is vulnerable to impulse buying. But consistent impulse buying can wreak havoc on your finances, so if you can learn to deflect it at a young age, your older self will be eternally grateful.

5. Savvy Shopping

Everybody loves a good deal. So why not keep an eye out for discounts or sales before making purchases?

For example, hold off on buying clothes or extra school supplies until you see “Back to School” specials in the summer. Or take advantage of Black Friday and Cyber Monday price drops before buying that latest, coolest electronic device. Everything old is new again, so take a stroll through a thrift shop to see if you can find a real vintage coat.

The bottom line is, if you don’t have to pay full price, why would you? If you get into the habit of making discounted purchases, your bank account balance will be heftier for it.

6. Stay on Top of Spending

Instead of carrying cash, use spending alerts through Online & Mobile Banking to help you stick to your budget. With spending alerts, you can get notifications when you make a purchase, ensuring you don’t overspend and stay on track with your savings goals.

Keeping an eye on your account in real-time makes it easier to manage money wisely while still enjoying the convenience of using your debit card.

7. Maximize Member Perks

As a StartStrong account holder, you get access to exclusive member perks, including discounts on entertainment like movie and sports tickets, plus cashback rewards on everyday purchases.

Before buying anything at full price, check out your available perks—you might be able to save money just by using your account benefits!

8. Do It Yourself

Instead of buying brand new, another way to save money is to “do it yourself”. Thousands of DIY websites offer ideas for making things yourself at a much-reduced cost. For example, rather than buy a brand new picture frame for your grandmother’s birthday, pick up one at the dollar store and decorate it yourself.

You can also make your own jewelry, hair ties, or tie-dyed t-shirts at a fraction of the cost of buying those items off the shelf.

9. Bank Wisely

As we mentioned above, savings accounts allow you to earn interest while growing your funds. At Jeanne D’Arc, we designed our StartStrong Savings Account specifically for teenagers. With StartStrong Savings, you earn 8.00% APY** on the first $500 in your account, which results in a $40 interest deposit at the end of the year—just for saving your money!

Plus, for any amount over $500, you’ll earn an additional 0.05% APY. What’s more, there are no annual fees, no monthly service fees, and no fees when you make withdrawals—which all add up to more money in your account.

10. Build Strategic Savings Habits

As you embark on your financial journey as a teenager, building solid, strategic savings habits that include proper budgeting and wise spending will serve you well throughout your lifetime.

Make it a routine to consistently review and adjust savings plans because your financial circumstances will fluctuate—so it’s best to adapt your savings strategy accordingly.

Our StartStrong Savings Account also comes with free online and mobile banking so you can keep up to speed on your account in real-time. You can also take advantage of our student loan counseling services to educate yourself about student loans before applying for one, which is a huge advantage!

Start Saving Money to Make Money

If you incorporate even just some of these money-saving tips as a teenager, you’re guaranteed to develop strong financial habits early on. Why does that matter? Because as you grow older, you’ll naturally have more expenses to manage like tuition, a car, and a home. If you learn how to save and manage your money now, you’ll only get better at it as you mature into adulthood.

Find out more about StartStrong Savings Accounts on our website.

Visit a branch to open an account and jump-start your savings journey today!