Look, we get it. Saving money seems very, very adult and very, very boring. You’re a teenager! You’re just starting to get a taste of the freedom you have so desperately been craving! Why would you want to use your allowance or the money from your after-school job on putting it into savings?
The truth is, there are many reasons why being a teenager who saves even a portion of their money will make for a very happy future you. Let’s talk about a few of them now.
1. It could make college life easier and more fun.
Sure, if you’re 15, you probably won’t be able to save up an entire college tuition in three years. But, you could definitely save up a nice little stash of cash to take with you when you go. If you start putting away $150/mo when you’re 15, you could head to college with over $5,000. Use that money for a rainy day emergency fund, rent, concert tickets, late-night study snacks, whatever you want! That money is YOURS. Not going to college? That money you save will help you start off on the right foot in whatever path you choose.
2. It could help you buy a car (or maintain one).
If your parents aren’t helping you purchase a car, then you have to find some way to buy one, right? Don’t wait until you already need a car to start saving. Put money away ahead of time so that when you get your license, you’re ready to hit the road! If you already have a car, saving money can help you be prepared in case anything goes wrong. Need a new tire? Need to fix a dent in the bumper? Tail-light go out? No worries, your savings will have your back so you’re not scrounging for money to get your car fixed!
3. It could prepare you for future life events.
Okay, so you are a kid and are nowhere NEAR the age of thinking about marriage, kids, mortgages, or other future major life events. And that’s the way it should be! But, whether we like to admit it or not, time has a way of passing quite quickly. Before you know it, you may be thinking about things like buying a house or how to pay for a wedding. Although saving for future life events won’t pay off as quickly as saving for a car you can use while you’re still a teen, your future self would love you SO MUCH if you already had a nice little pile saved up in case you want to use it for a home down payment, or heck, even just a really dope 30th birthday trip!
4. Your retirement would be LIT.
One of the best rules of thumb when it comes to retirement savings and investing in general is to start saving as early as possible. If you start putting away money now as a teen and are able to save $16,000 by the time you’re 26, you could end up with over $2 million by the time you retire. $2 million!!! That’s a lot of money. You could use that money to travel, help send your grandkids to college, or honestly just hang out and eat a lot (a LOT) of Taco Bell. You’re retired, you’ve earned the right to eat a Cheesy Gordita Crunch every day.
So now that you know how saving as a teen can help you in both the short term and long term, you’re probably wondering how to do it. There are lots of services out there for people who want to save money, no matter the reason. One of the best financial products and resources for teens (and parents of teens) is Current, the app that helps parents teach their teens financial responsibility early in life. The app allows teens to budget, save, or donate their hard earned money. Check them out and start saving today!