Saving money can be tough no matter what age you are. But when you’re young and all you want to do is get out and gather as many experiences as possible, it’s particularly difficult to say “no” to the things you can’t afford.
Whether your teen is away at Uni, or out in the big wide world with a pay cheque every month, their focus is of course on regular nights out with their mates or racking up their gig & festival count, there are plenty of things that can stop you from having a successful budget as you leave your teens behind. The good news is there are some things you can suggest to improve their chances of saving.
1. Use a Different Bank for a Savings Account
Have you ever heard the phrase “Out of sight, out of mind”?
It’s hard to avoid spending the money in your savings account when you see it every time you look at your current account balance. Putting a savings account in a different bank will help to reduce the temptation of pulling savings into your checking account because you won’t see that extra cash. Eventually, you may even forget about your savings entirely, particularly if you have an automatic deposit set up to take money out of your bank with each wage payment you get.
2. Spend More Time at Home
One of the biggest issues facing youngsters who want to save is the fact that they’re constantly spending on entertainment. Going out to the pub with friends might not seem like an expensive night at first, but it’s easy to lose track of your spending after you’ve had a couple of drinks. Instead of putting your bank account at risk with a trip to a local bar, consider ordering a pizza, and having drinks at home instead.
You can make cocktails yourself if you like, and you’ll find that it’s easier to catch up with your friends when you can control the volume of the music too.
3. Reduce your Recurring Bills
Just because you’re young, doesn’t mean that you don’t have responsibilities that you need to think about. We all have recurring expenses like rent payments, utility bills, and other concerns to think about. However, you don’t just have to accept the price you’re given; things like mobile phone packages vary enormously – switching supplier can save you a lot of cash in the long-term. As a personal tip, do check out Voxi – we have all of our teens on their Sim-only package. For £10 a month it’s unlimited data for all social, and currently 4GB data allowance on top. For £10! And if you sign up via that link, then we both get a £10 Amazon voucher too.
4. Manage your Debt
There’s a good chance that you’re going to need to take out a few loans during your lifetime. The best way to make sure that they don’t drag down your financial health is to choose the loans with the best interest rates possible. Get online and compare your options via sites like Readies.co.uk before you commit to anything. Remember, there are plenty of providers out there, and each could offer you a completely different deal.
5. Stop Subscribing
Subscriptions are a big problem for the younger generation. It’s easy to sign up for a gym membership or a beer subscription box every month and simply forget about it. In fact, you’d be surprised just how many things you pay for each month that you never stop to think about. Consider ditching the subscriptions that you don’t use on a regular basis or can’t afford to stay committed to.
6. Shop with Sales and Coupons
Just as you can save money on the costs of your utility bills by simply changing provider, you can also reduce the costs of your day to day spending by making you don’t use any more money than necessary. There are often reduced rates in high street stores with a Student email address – and if you’re not still a student, then think about looking online for coupon codes and vouchers before you buy anything. You’d be surprised how many deals you can find with just a quick search. You can also save money for seasonal sales if you don’t mind waiting for the things you need a little longer.