How to save money as a teenager: 9 tips

Think back to the last time you wanted something. Maybe it was a ticket to see your favorite pro sports team or an expensive designer bag. You didn't have enough money to buy it, and your parents or guardians told you to save your money. Easier said than done, right?

But here's the thing — saving money can be easy. If you work on building your savings muscle, it becomes a habit. By focusing on these tips for teens, you can learn how to save money as a teenager. 

1. Set savings goals and opening a savings account

Not sure how to save money fast as a teenager? Start by defining your financial goals. What do you hope to gain from holding on to some of your hard-earned money? Are you saving for a new car or putting some cash aside for when you graduate high school? Is there an upcoming concert you want to attend? Setting a few goals helps define your purpose and keeps you hyper-focused on your savings journey.

Separate spending money from savings

Setting up a savings account will allow you to monitor your progress easily. You can use the account only for your savings rather than mixing it with spending money. 

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Pro tip: If you set up an account with Greenlight®, you can earn up to 5% on savings.* That's extra money to help you reach your goals faster.

2. Track your spending

When was the last time you looked at the ways you spend money? Now's an excellent time to dig into the details. You may uncover a few purchases you didn't need, like that vanilla latte. While little impulse buys may not seem like much money, they can add up quickly. Knowing your triggers can help you stash away more cash and learn the value of saving money.

3. Make a budget and develop good money habits

You can budget your earnings and establish a savings plan in several ways. One option is cash budgeting, where you estimate your monthly earnings and expenses, then allocate a percentage of earnings to savings and deposit it into your new account.

Another option is to automate your savings. You can set up rules in your bank account, like automated transfers to savings. The bank will automatically move the amount you specify to your savings without any extra work from you.

If you find it hard to control impulse buys, try implementing the 30-day rule: Pause unnecessary purchases for 30 days. Once the time passes, you can buy the item if you still want it. The 30-day rule can help curtail spending habits so you can save more.

4. Get a summer or part-time job

There are many ways for kids and teens to earn money, from part-time jobs to seasonal summer work. While school and other responsibilities may mean you need more flexible work hours, you can find options that fit your schedule. You might look for earnings opportunities during your downtime, like on school vacations or weekends.

5. Find student discounts

Many companies offer student discounts. These discounts can make it easier to buy items at cheaper prices. You may find deals on everything from big electronics, like computers and smartphones, to more affordable meals at your local fast-food joint. You may need proof of your school enrollment to qualify for a discount, like a student ID. 

6. Consider prepaid debit cards

A prepaid debit card works similarly to a regular debit card. You can use it to buy items and accept deposits, but it has extra protections. One significant benefit is that it automatically declines purchases that exceed your balance. This protection can help you avoid overspending, which can lead to costly overdraft fees.

Greenlight offers a debit card perfect for teens learning to manage money. It includes balance tracking and store controls, which help teens and parents monitor spending.

7. Do chores to earn more allowance

How can you save money as a teenager without a job? Chances are your parents have a few chores they could use help with. Maybe the garage needs a thorough cleaning, or your parents need you to babysit your younger sibling after school a few days a week. Ask if your parents are willing to pay extra allowance for chores. 

8. Prepare for unexpected expenses

We all have unexpected costs from time to time. Maybe you need cash for a class or team outing. Or you're short on gas for the week and need an extra fill-up. Unforeseen expenses can derail your saving efforts, but they don't have to. You might create a small emergency fund for unexpected costs without diving into your monthly savings. 

9. Shop second-hand

There's no rule that all your clothes and accessories have to be brand new. If you're willing to do some digging, you can find great deals — including designer labels — at many thrift, vintage, and second-hand shops.

Stop at your local thrift store the next time you want a new jacket or sweater. You may find what you need at a much lower price. You can also check out online secondhand marketplaces from home. Scoring a great deal leaves you with more cash for savings or other stuff you need.

How Greenlight can help you reach your savings goals

When you learn how to save up money as a teenager, you can carry the lesson with you throughout life. Greenlight offers fantastic tools for managing money, including cash-back savings for kids and teens. You can boost your savings habits with Level Up™, a fun game that teaches you the basics of personal finance. Try Greenlight today.

*Greenlight Core and Greenlight + Invest families can earn monthly rewards of 1% per annum, Greenlight Max families can earn 2% per annum, and Greenlight Infinity families can earn 5% per annum on an average daily savings balance of up to $5,000 per family. Only Greenlight Max and Infinity families can earn 1% cash back on spending monthly. To qualify, the Primary Account must be in Good Standing and have a verified ACH funding account. See Greenlight Terms of Service for details. Subject to change at any time.