How To Encourage Teenagers To Save Money

Last Updated on: 15th March 2023, 04:33 pm

Encourage Teenagers To Save Money

When it comes to saving money, we know it is hard. We were not born with the habit of automatically saving money. It takes time to learn and get into the habit to save money. So we are the ones who are going to teach our kids to focus on saving to secure their future. We need to encourage teenagers to save money in an encouraging and supportive way

We all know that kids are finding it harder to get on the property ladder as they get older. They need huge deposits to be able to put down. If they decide they want to travel instead of settling down, they will still need to get some money together.

Teaching your teen to save is also good for getting them to save for what they want, instead of borrowing money. Some kids are natural savers and they love to put money away. So if your teen is like that, it is half the job done already.

Encouraging children to save can begin when they’re young enough to begin wanting things for themselves. If they’re old enough to point at a toy in the toy store. They’re probably old enough to begin learning about money. The skills they learn at a young age will stay with them into adulthood. So even as a young child get them to pay for their own toys with money that you give them. You are setting the foundations for their future.

Give Them An Allowance

Giving your teenager an allowance helps them to understand how to save and how to think about what they are spending. They are taking control and they are being independent. But if they run out of money, they know that they cannot get more until next week. It is a good way to learn how to live week to week on a budget. And it teaches them how to budget in the real world when they have to live between paydays.

If you open a bank account for them, they will start to understand how to use the banking system and gain a little interest in what they are putting in the bank account. They will have a bank card so they can withdraw money when they want. Some accounts like Go Henry, let you set up an app so you can keep an eye on younger kids’ spending and there is an option to put some money into a savings section of the account.

My daughter has Go Henry and has a few different savings accounts going on with that account. Go Henry, also gives your teenager advice on how to save. As well as discounts on certain days out, food and drink as well as activities. If you open a Go Henry account you get your first month free and you can get an awesome Harry Potter card like this one.

Set GoalsTo Encourage Teenagers To Save Money

Depending on how old your teenager is, you can set up some different goals for them to save towards. Getting them to save up £1200 for a car is a lot to save up on an allowance or Saturday job wage. They will feel like they are never going to reach their target. But making it into smaller goals for your teenager to reach will be more encouraging. Instead of £1200 try to make it a £120 goal. It is manageable and it is still 10% of their whole target. But it isn’t as big a goal as the whole amount.

They might also have smaller goals like a new pair of shoes or a computer game. Whatever their goal is, encourage it. If they are saving their money, you could also match it either £1 for £1 or even if you give them 10p for every £1 they save.

A Savings Jar Will encourage Your Teenagers To Save

A savings jar doesn’t need to be a fancy money box. It can be an old jam jar that you have washed out. In some ways, a jam jar is more fun because they can see their savings grow week by week. they might just want to put small coins in there to start with. But as they get more confident and like seeing their savings grow, they will add more and more.

You could even encourage them to do the savings plan in a jam jar where they put 1p away on day one, 2p on day 2, and 3p on day 3. Right up to 365p (£3.65) on day 365. This way they will end up with they can save £667 in a year this way.

When the jar is full get them to take the coins to the bank and pop them into their account where they will get a little bit of interest.