How To Be Smart With Money As A Teenager

6 Tips To Be Smart With Money As A Teenager

As a teenager, balancing between meager cash inflow and a never-ending wish list can be a nightmare. Without a savings plan, you may end up spending every dime that comes into your pocket on gifts, new clothes, and other items. If you are looking to start a disciplined and prosperous financial life, here are some tips to get you started.

1. Secure a part-time job

Teenagers can legally work as restaurant servers, supermarket attendants, or babysitters after school, on weekends, or during the summer holiday. These are some of the ways you can use to make a little extra cash during your free time within your locality. Alternatively, you can find best online jobs for teens on the internet and pick the ones that suit your skillset and routine schedules. After securing yourself a job, your next big challenge is saving the hard-earned money.

2. Have a saving plan

After acquiring a job, you should set up a savings account. At this stage, saving might seem cumbersome if you are making less than $100 a week, but it shouldn’t discourage you. Set daily, weekly, or monthly saving targets and work hard to achieve these targets. In the long run, regular savings builds a financial discipline that will be crucial for your financial life as an adult.

3. Be disciplined

Once you start saving money, you are likely to be tempted to spend it, and this is where discipline comes in. The first couple of months might seem challenging, but as time goes by, saving becomes a habit. Being disciplined ensures that you hit your set saving targets while avoiding unnecessary spending. According to James Clear, the author of Atomic Habits, if you start a habit now and be thoroughly disciplined on it, the practice will stick with you for the rest of your life.

4. Create a budget

How can you pass on those trendy pairs of sneakers when you have cash in your savings account? What about a Friday night out with friends?

Overspending is the biggest challenge that teenagers face on their money-saving journey. The best way to go around this problem is by having a budget that allows you to live within your means. Financial experts advise people to budget for their money after deducting the savings. There are dozens of online budgeting apps that can help you track your spending and draw actionable budgets.

5. Learn the best financial practices

There is a lot of information on the internet regarding the best financial practices for teens. Take time and research some of these practices and choose what fits your financial situation. This is also the best time to look into contemporary issues such as financial freedom, debts, and funding sources for your college education.

6. Consult your parents

Not many teenagers want to spill their savings secrets to their parents. However, your parents want to see you succeed and will do anything to help you achieve your dreams. Seek their guidance on financial matters.

Read next: Is Today’s Teenager Responsible Enough?


Your teenage years are the best time to cultivate good money habits, which will put you ahead for the rest of your life. Implementing these tips now will help you have a prosperous financial life.

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