Ah yes… the glory days of being a teenager. I remember them well. Especially since that is when I started making money online and was just getting started with my first real business. I was in high school at the time and while other kids were thinking about what colleges they would apply to, I was thinking about what conferences I would be attending at and speaking at next… along with the many other tasks of running the day to day operations of my business.
Even so… saving (and managing) my money was something that was always on my mind as well. This however is usually something the average teenager does not think about.
When we are younger, all we want is to be older… and with the progression of age usually comes the loss of opportunity.
So when you are young, there is no better time to start thinking about your financial future… no matter how much you might currently have.
Saving money isn’t easy and it’s much easier to spend then it is to make. So with everything I mentioned in mind, here are three tips for teenagers on how to start saving money and planning for the future.
#1 – Start a Business While You Are Young!
You can look through the internet all you want for lists about how teenagers can save money, but many of them won’t list the concept of starting a business. This is exactly what I did, at the age of 15 to be exact!
Starting a business when you are young is actually much easier than when you are older for a number of reasons.
- Little to no financial responsibilities
- You can still live with your parents and have no cost
- No college / work experience required
- The internet offers many little-to-no investment opportunities
The only thing cooler than have your own business and making money later in your life, is doing the same in high school when everyone else is slacking off and you’re already so much ahead!
#2 – Start Investing Early
I always hated this saying because it sounds so simple and stupid… but it’s the truth.
I remember putting money away when I was much younger and because I didn’t have those extra added “life” costs and financial obligations, it was much easier to invest in my future and put away money year after year. Thinking back I actually wish I did more of this.
The reason why putting money away works so well is that not only do you get tax deductions, but you are also getting compound interest year after year. If you are doing this through a business you can get even more benefits out of it, such as matching personal investments.
Bank rates are terrible right now, so putting money away for less than 1% per year is nothing to smile about. Saving money is saving money, but if you are going to do it, be sure to explore your options.
#3 – Manage Your Spending and Cut Costs
These tips all seem so basic… because they are. However, they also work.
This one applies not only to teenagers and all of us, but also in business as well.
Cutting costs are one of the best ways for you to increase your savings and how much money you have coming in and out on a daily, weekly or monthly basis.
From a business aspect many of us pay for web hosting, list hosting, advertising and everything in between. Many of these costs are recurring.
Recurring costs teenagers might have aren’t usually linked to credit cards (since they usually don’t have them), but going to the movies once per week, getting a coffee every day and going out shopping with your friends can add up quickly. Soon enough your weekly paycheck is already spent!
Cutting your costs and managing your spending isn’t about cutting out the fun, it’s more about being smart and weeding out what you need and what you don’t.
Don’t also be afraid to look for coupons and discounts online. Now it’s easier than ever to find a 10-20% off coupon right on your phone and there is almost no reason for you to ever pay retail for anything again. Everything is usually cheaper online.
Quick Money Saving Tips for Teens
No one likes to think about saving money… especially when we are talking about “making money” all the time.
There is nothing sexy about saving money right now… but time is something we all have to deal with and if you can afford to put some money to the side and away for the next 20 years, you will really appreciate it in the future.
For anyone who is in their teen years (of maybe even younger), right now is the time for you to seize the moment. While so many people in the country are struggling to find a job, you have to opportunity to do something amazing with your time and lives by starting a business online.