How to Save Money at a Young Age

There are many benefits to saving money at a young age. You can use it to pay for college or university, buy something special, or just save it until you're an adult and use it for insurance, putting a down payment on a home or buying your first car. However, saving money is not easy. You must resist the temptation to spend money, which is no simple task.

Steps   [edit]

  1. Choose a savings goal. When you first start getting an allowance, decide how much you will save each week. About one-third or 33% (percent) of your weekly allotment is fair. If you get five dollars, save about $2.00 a week. Put the money you are saving in a piggy bank. If you get paid on a per-job basis, try to do more jobs to get more money.
  2. Open a bank account. If you're under 18 years old, put in a request with one of your parents to open a joint savings account in your name at your local credit union or bank. This will enable you to earn interest on the money you save and potentially making your savings less accessible when you feel like splurging.
  3. Save the birthday money. If you get extra cash on holidays or your birthday, always save at least half of that. Some families even give their relatives' children savings bonds for college or money earmarked for long-term savings. Put those in the bank though, not in your piggy bank.
  4. Keep saving. Have a goal and spend the money on something special.


Tips   [edit]

  • To keep yourself from spending your long-saved money, use a piggy bank that doesn't have a hole in the bottom. That way, the only way to get the money out is to break the piggy bank.
  • Utilizing a bank or credit union will especially make it harder for you to spend your money, because your guardian will have to be with you when you pull the money out until you are of age. Most banks have a "Young Saver" option or some similar type of account.


Warnings   [edit]

  • Put large amounts of money in the bank to avoid losing everything in a fire, accident, or robbery.
  • If you have sizeable bonds, you need to keep record of these items in safe place, like a bank deposit box or fire-proof safe at your home.


Things You'll Need   [edit]

  • Money
  • A piggy bank
  • A savings account
  • Money market account (once you have enough saved, will allow you to earn more interest on your money)
  • Self control