How to save up for moving out: A step-by-step guide for teens and parents

Moving out is a big deal. And while you probably feel excited about it, there may be some kinks you want to work out, too. Take money as an example. How much should you save up for moving out? And where will those funds come from?

Advance planning and a few moving tips can give you the confidence to handle the day without any bumps in the road. Here’s how to save up for moving out using effective budgeting and earning strategies.

1. Assess your current financial situation

Grab a trusty pen and a notepad, plus a copy of your most recent bank statement. Create three categories: income, expenses, and savings. Then, put each transaction in your statement in the relevant category. 

This exercise gives you a clear view of your financial situation. With details in hand, you can set clear financial goals to work toward before move-out day.

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Tools to track spending

Manual budgeting is old school, and it’s easy to make mistakes. Consider using a spreadsheet or specialized app, like Greenlight, the #1 family finance and safety app, to track income and expenses. The right solution can save you time and provide insights that may not be super obvious on paper. 

2. Estimate moving and living costs

Moving comes with a few upfront costs you only pay once. Take renting a moving truck as an example—you’ll probably only need it for a day or two. Security deposits for utilities and rent are also nonrecurring expenses.

Separate moving costs and ongoing living expenses into two buckets. Then, figure out how much you’ll pay for each item. If you’re unsure how much things cost, do some research to get a reasonable estimate. A quick phone call or internet search can help you clarify numbers.

3. Set realistic savings goals and timelines

How much should you save up before moving out? It’s a different number for everyone. You may feel comfortable with one or two months of living expenses in savings. But someone else might prefer more. 

Also, think about parental expectations. Will you be entirely accountable for your living expenses, or will your parents help out? Have a conversation together so everyone is on the same page. Their input can help you figure out just how much you’ll need in the bank before moving day.

After you have a savings goal, establish a deadline. Include a few target milestones and check-in points to track your progress. 

4. Create and automate your savings plan

You’ve done the hard work of budgeting and research. You even have a weekly or monthly savings goal. Now you can put your plan into practice. One easy way to do so is by automatically transferring a portion of your earnings to savings. 

The plan works if you have a regular paycheck. You can set up automated savings transfers for each payday. But if you earn money from odd jobs, you may need to be a little more hands-on. 

Pro tip: Create a reverse budgeting rule to follow anytime you earn money. Perhaps 20% of all earnings go to your moving-out savings account, and you spend whatever’s left. Tweak the percentage to fit your personal goals, and make it a normal part of the deposit process.

5. Boost your income with side jobs or gigs

Life got in the way, and you need to know how to save money fast. Or, maybe your regular income isn’t quite enough to meet your savings goals. That’s ok, because you can increase your earnings through other sources, even if you can’t commit to a full-time gig.

Are you a dog or a cat lover? Try offering pet sitting services for people in your community. Many owners need help when they’re away on vacation or at work. It’s a simple job that you can fit around other responsibilities.

Another option is tutoring. If you’re an ace in calculus, history, or some other subject, help out your fellow classmates and charge for your services. 

Get creative and choose work you enjoy. 

6. Cut unnecessary expenses wisely

Are there a few items you don’t really need, but pay for anyway? Maybe there’s a monthly streaming service that you never log into, or expensive takeout that you could replace with a home-cooked meal. Living within your means is a lesson you’ll take with you well after moving out. 

How parents can support teens during this process

As a parent, you have years of life experience paying bills and living independently. Share your financial tips with your teen as they prepare to move out on their own.

Think about some key costs that your teen may not be aware of and why they’re an important part of your monthly budget. Take renters’ or homeowners’ insurance. It protects you financially if something happens to your home, so you don’t have to start from scratch.

Be transparent about your experiences living on your own. If you’re not sure where to start, check out our tips on how to talk about money with your family. Your encouragement can help your teen save and spend wisely as they plan their next steps.

Greenlight: Take control of your savings and move out with confidence

Whether your move-out day is next month or five years from now, take action to secure your finances through savings. Figure out how much you need and start socking away a little each month. Before you know it, you’ll have enough to pay for moving expenses and feel secure on your own.

Greenlight, the #1 family finance and safety app, has money management tools that let you track expenses anthd set dedicated savings goals. You can stay on top of your finances—no pen and paper required! 

Your app. Your money. Manage money, save up, and stay safe with our all-in-one app. Show your parents how Greenlight can help. Try Greenlight, one month, risk-free. †