Money saving tips for a teenager?

[mattlanta]

I'm 17 years old with a part-time job. I don't have a lot of bills to pay off and thankfully I don't have to pay for my own gas. I usually spend most of my money on food, but lately I have been getting worried about my spending habits. Maybe I'm thinking about this more now because I just bought another video game (my first of the year) and I get self-conscious when I buy something like that.

I'm just wondering what you guys know about saving money and if you have any advice on how to manage money for a teenager. Major purchases I've made in the past after getting my job in the summer: Samsung HD LCD Monitor, NBA League Pass from DirecTV, a couple video games, PS3 Bluetooth Headseat.

Now I'm worried though because before, it seemed like I was just set on buying and never thought about saving / increasing the money in my bank. I know money is earned so you can spend it on stuff, but I don't want to be that person who buys every thing as soon as it comes out and has every thing they want. I was thinking of getting MLB TV, then Out of the Park Baseball 10, but then I realized ... I'm probably going to want to buy more things when it comes into NFL season. I'll want to buy Madden and then I'll have to think about buying the NFL League Pass...

I mentioned before that I bought the NBA League Pass from DirecTV and now I'm not sure it was fully worth it. I feel like I watch the games just because I bought the league pass instead of watching it because I want to. I was also disappointed because all of the Knicks games were blacked out.

Then I have to think about college and if I go on-campus my first year, I'll want to purchase a gaming console like a PS3 because the one I use is my brother's and he lives at home.

All I'm saying that at first, I was good with managing money. Now I feel like I'm spending too much. I'm just wondering if anyone has any good advice on money-managing for teenagers lol. Thanks.

[KSUowls]

Re: Money saving tips for a teenager?

Here are some tips

Easy things to do:
- Pay with cash. When you use a cc or debit card your mind does not make a direct connection with the money you are using. When you pay with cash there is a physical connection.

- I heard this from my favorite talk radio personality, but it sounded like a great idea. Every time you buy something, take all the $1's and put them away in a jar. Say you buy a Biscuit for $1.50 with a ten dollar bill. Your change will be a $5, three $1's and 50 cents. Take those three $1's and put them away.

If you're really serious about saving your money and not being an impulse buyer:

- Make a budget. Obviously figure out how much you make every month less any necessary expenses. Then put a self imposed limit on yourself, and since you are so young and really don't "need" much, try to aggressive with that limit. So say you make $400 a month less necessary expenses. Set your max monthly expenditures at no more than $100 so you are banking at least $300...ultimately that limit will be set by you, but again if you are serious about saving be as aggressive as you can while you are young.

- Kind of building upon the previous. Put your excess cash in savings accounts and/or CDs

[mattlanta]

Re: Money saving tips for a teenager?

Oh yeah, and I never use credit card. Although I have on for emergency, it is my mom who essentially pays for it. I use the credit card for gas and whenever I go for groceries. I use the CC obviously for my online purchases too, but even those purchases I try to stop now.

[Herbsinator]

Re: Money saving tips for a teenager?

mint.com....this site will help you track what you spend and help you make a plan for saving.

[Gotmadskillzson]

Re: Money saving tips for a teenager?

Debit card is the way to go. Every month you get a purchase statement and you can easily see where you spending the most money at. And yeah league pass is so not worth it, considering all the big name games comes on tv anyway.

[KSUowls]

Re: Money saving tips for a teenager?

There isn't anything wrong with debit cards, but you can get a monthly statement with a credit card as well. The issue is just that there is a disconnect with any form of non paper transactions. If you are paying with paper though you are physically touching/seeing the money leave your possession which generally makes purchases less likely/not quite as big.

Of course I'm also not saying to forsake plastic. It's always good to get a credit card to start building credit. These are just tips to help curtail spending.

[z Revis]

Re: Money saving tips for a teenager?

Don't ask me. I am HORRIBLE with saving money. I spend money like it grows on trees.

[GAMEC0CK2002]

Re: Money saving tips for a teenager?

The number 1 rule for saving money: Pay yourself first. Unless you are in a situation where ALL of your money is going towards paying bills-- at least 10% off the top should be saved.

If you're not old enough yet, have a parent open up a joint savings account with you at a local bank. When you get of age you can have it switched to your name only.

That way not only are you saving money, but it's also drawing interest. Once you get a decent amount saved up, you might want to think about getting some bank CDs. (only drawback is that you can't touch that money for a set time)

Number 2 rule: Stay away from credit cards (and big purchases on them) as much as possible. You'll still need to have and use one to build up a good credit history. Only purchase things on it that you can pay off quickly (1-3 payments). A lot of people ruin their credit in college--at every USC football game they were offering free stuff for signing up for credit cards that had ridiculously high interest rates. PAY ON TIME. PAY ON TIME. PAY ON TIME.

Number 3 rule: Know when to walk away from a "good deal". It's not a good deal if 1) you don't need it or 2) you can't afford it.

Saving money is a habit. Whenever you get paid, at least 10% goes to savings.

Obviously if you want to save more, put more than 10% in.

Note: If you're the religious type, then another 10% (or what you can afford) goes to the man upstairs.

[~LiverpoolRed~]

Re: Money saving tips for a teenager?

I would advise not to carry cash with you. To this day I do not carry cash around with me. If I have it I will spend it, and most likely it will be on something I don't even need.

[ScoobySnax]

Re: Money saving tips for a teenager?

I would advise not to carry cash with you. To this day I do not carry cash around with me. If I have it I will spend it, and most likely it will be on something I don't even need.

I agree with this. I can't seem to keep cash on me. I spend WAY less when only using my debit card. My fiancee can live two weeks on $50 cash for little stuff and I just can't do it. I could easily blow that on a game or other electronics. I do, however, pay myself first and that always helps me save. I use paypal as my savings. Whenever I sell an item on eBay, that money is deposited there. I also make recurring withdrawals from my checking to Paypal. It's working for me so far.

[dossier]

Re: Money saving tips for a teenager?

Stop smoking weed

[Happy29]

Re: Money saving tips for a teenager?

Buy some books and DVD's by Dave Ramsey. You will learn all sorts of money saving advice that you can carry with you through out your life. And when your older you'll be a lot better off.

[jetercanoturn2]

Re: Money saving tips for a teenager?

My advice to you is Mattlanta, Your 17, and young, not many bills to pay. So just enjoy the hell out of your money, It won't be like that forever. Yes it's a good idea to keep a nice amount of cash in your savings account, but don't feel guilty about spending your hard earned money, put some aside and spend the rest on whatever you want. Everything you listed you bought seems pretty important to me

[KG]

Re: Money saving tips for a teenager?

It sounds like you are conscious about your spending habits which is a good thing IMO.

I agree with jeter to an extent, especially about feeling guilty after you purchase something. After I got my first ever paycheck my boss told me to "buy something for myself to remind yourself of what you are working for". If you don't have any major bills this should be much easier.

You should always have some emergency cash in the bank but if I were you would I write out all of the things I was thinking about purchasing in the future (PS3, Sunday Ticket, etc...) and put something aside for them every paycheck. It won't 1) hurt you as much in the short-term because you're only putting aside a small portion; and 2) hurt you in the long-term because you're not shelling out a big lump sum all at once.

[Gotmadskillzson]

Re: Money saving tips for a teenager?

Yeah.....nothing wrong with rewarding yourself. A game here and there isn't a big deal. Spending your WHOLE pay check on games is.

Anytime you got to spend more then half of your pay check on 1 item, red flags should be raised and you should really think if it is a want or an actual need.

Ask yourself.......is this a one time investment or would you have to keep paying this amount everytime.

for example: PS3 - one time investment
League pass - every year investment

Also ask yourself will it benefit you in other aspects of your life.

For example: Laptop - used for school, work, games
Broadband - makes searching for stuff a lot easier and smoother
Cell Phone - safety, job hunting, school info, games