SAVE YOUR CASH
Saving money gives you independence as a teen. Do you find yourself constantly begging your parents for money for clothes, movies, dates, concert tickets, gas for your car, etc.? Even though you get an allowance, and maybe work at a part-time job? Once you learn to save your money, you’ll find that you can make your cash last longer. You’ll also be able to put aside funds for stuff you really want, like a weekend ski trip with friends or a fabulous prom dress. Follow these tips from Myjellybean.com to get into the saving habit.
Start With Some Money!
There’s no way around it - you need to earn money, before you can start saving it, Many teens get an allowance from their parents, and some earn extra cash by doing chores around the house. That’s a good start. Unless your parents are super-generous, though, it’s likely that you’ll sometimes need to earn extra cash to buy the stuff you want.
Consider getting a part-time job after school to score some cash. You could work at the local mall, or be a babysitter for younger kids in your neighborhood. Ask your parents if any of their friends might need a regular sitter.
You could also start your own business! Do you love to sew, organize your closet, or design Web pages? That skill could be turned into cold hard cash.
Save Before You Spend
Whenever you get your hands on some money (from a job or your allowance or whatever), take your savings out immediately, before spending any of the money. Put it into a “savings jar” or in the bank. The beauty of this system is that once you've removed your savings, you're free to spend the rest of your cash.
Saving just 10% of your allowance can help you build up your stash, fast. For example, if you earn $60 a week at your part-time job, and start putting $6 in your savings jar each time you get paid, by the end of the month you’ll have already saved $24. That’s enough for two movie tickets, a CD, a cute top, or a poster of Zac Efron!
Maybe that doesn't seem like so much money, but it’s more than nothing. The point is to get into the habit of saving some of your money, whenever it comes in. That way, you make saving a regular part of your life. And if you can look ahead to big purchases you want to make – such as a month at summer camp next year, or a guitar so you can start your own band – you can allow your savings to build. If you banked $24 a month instead of saving it, by the end of the year you’d have saved $288. And that’s not chicken feed!
Know Your Weaknesses
If you know you are powerless to enter a shoe store without purchasing, then leave your cash at home when you go shoe shopping with a friend. If you don’t have the money, you won’t spend it. It’s that simple. (And no fair borrowing from your friends!) If you’re not comfortable going out without any cash, take a little but leave the rest at home. That way you can set a spending limit before you even reach the store.
Wait a Week
When you’re thinking about buying something major (such as a leather jacket, singing lessons or a box set of CDs), wait a week. This will help you make sure you really want the item, before you spend a huge whack of your hard-earned cash. Plus, who knows… maybe it will go on sale.
Create Rules
Make up savings rules for yourself. For example, you could make a rule that any money you get for your birthday goes right into your savings account. Or, you might decide to only buy magazines every other month. Making up savings rules gives you control over how you manage your money, and guarantees that you’ll always have some saved cash in case of emergencies.
Make it Tough to Spend
If you find it hard not to empty your bank account whenever there’s cash in there, make it harder to get the money out. Cut up your ATM card so you have to stand in line at the bank whenever you want to withdraw money. Deposit all your incoming money (from your allowance, your job, etc.) into the bank, and set a fixed amount that you will withdraw at the start of every week for spending money. If you have to make a big effort to get at your savings, there’s less chance you’ll spend them.
Spend Bills, Save Coins
This is one of the great secrets of successful savers. When you buy something, only use paper money. If you buy a lipstick for $2.49 and pay for it with a $5 bill, you’ll get back $2.51 in change. Put the two dollar bills back into your purse, and keep the 51 cents separate. Only spend the bills, not the coins. Put all the coins in a “Change Jar” for savings (use a mason jar from your kitchen, or a plastic food container). You’ll be surprised at how quickly your Change Jar fills up! When it’s full to the brim, take it to the bank and deposit it, or ask them to change it into paper money and use it to pay for something special.