Teens: Start Your Savings Journey with a Personal Savings Account

If you were to ask adults what their biggest financial regret is, it‘s likely that many wish they had developed better saving habits as a teen. That’s why it’s so important to learn about earning, saving and responsible spending. Start these habits now for a lifetime of financial success.

Here are four specific ways teens can save money:

1. Open a teen savings account The sooner you open a teen savings account, the more time the deposited money has to earn dividends. This rate can vary between financial institutions, so shop around. Don’t worry if you’re not depositing that much money right now. The point is to develop the habit and carry it into adulthood.

2. Establish a savings plan Once you have a little bit of money saved, it’s only natural that you think about all the fun stuff you could buy. Before you make a withdrawal for an impulse purchase, prioritize your savings by creating a plan.

   First, open a checking account. Next, allot a certain amount of money from your paycheck or weekly allowance to your savings—say, $50 per paycheck. The rest of the money can be for spending or other expenses.

   BONUS TIP: If you’re saving for something specific (like college or a new car), it’s a good idea to designate this money to a secondary savings account. This strategy helps you stay motivated to reach your short-term goals while growing your general savings for long-term goals.

3. Utilize your student ID Teens can save just by using the discounts offered through their student ID cards. Discounts include: Amazon Prime, local restaurants, grocery stores, sporting events, local museums and public transportation. Next time you are checking out, ask if there is a student discount.

4. Monitor your purchases Tracking where you spend your money can be particularly difficult because of the typical jobs you may perform. For those who babysit or mow lawns, you may be paid with cash, which tends to be the most difficult payment type to track.

   It’s best to store cash in your savings or checking account to help reduce the urge to overspend. But, if this is not a possibility, there are online budgeting tools that can keep track of cash purchases and help you stay within your budget.

   If you do get paid in cash, consider using an electronic payment app like Venmo. This would allow the person paying you to send the money straight to your registered account.

Mountain America Credit Union members have access to money management and budgeting tools through our online banking website. These tools can track long-term and short-term savings goals, monitor all your financial accounts and visualize your spending habits.

Keep your financial future looking bright—start following these tips today!