Now that you are getting an allowance or pocket money you need to learn how to save money as a teen. You can’t save all your money, because then you wouldn’t have any fun with your friends when you hang out. Your mum probably gives you $20 a week, and that’s good money. Or maybe you have a part-time job you work at the weekends and earn 5 times that.
But now you want to buy a new bike, a skateboard or if you are a girl, you want to buy yourself that beautiful dress you saw at the mall. You know you would look pretty in that, and everyone would tell you. But you don’t have the $600 to buy what you want. And mum and dad won’t buy it for you. It’s half a year away to your birthday or Christmas. And it would be your luck that your mum and dad, either don’t have the money or never buy presents for $600, even if they’re loaded.
What can you do? You can learn to manage what money you do get better. You can still hang out with your friends at the mall and buy milkshakes, but instead of buying a chocolate milkshake and the Deluxe Burger, buy a medium chocolate milkshake and a cheeseburger. Don’t buy magazines ask your friend if you can borrow their magazine.
Get your friends involved in your goal to save money. Tell them what you want to buy. Maybe you and all your friends could all get new bikes or new dresses. If your friends agree, you could be sharing more and you could get a lot of cool stuff.
Now, what’s the plan of how to save money? The plan to save while still enjoying life is easy. For every $10 you earn, save $1 or 10% of what you earn. If you don’t like math you can work it out on a calculator or just remember for every $10 you earn you save $1. The calculation for the calculator is “amount earned” x 10% or “amount earned” x 0.1 = “amount to save”.
If you get $20 pocket money this would be $2 a week. In a year you will have $100 or more. With your birthday and Christmas coming up, ask for money instead of presents. Or go all in and ask them to buy you what you want as a birthday and Christmas present combined. They may agree to this, you never know.
Knowing this formula of learning how to save money as a teen is a trick you can use for the rest of your life. There was a book written about this money-saving formula called ‘The Richest Man In Babylon’ by George S.Clason. Many people read this book, and use it to get out of debt or buy things they want to buy but can’t afford one pay packet. Good luck with your savings goal.