Tips for Teens to Save Earnings from Summer Jobs

Summer is here; it’s the perfect opportunity for many teens to earn extra cash. Whether flipping burgers, babysitting, or working retail, a summer job can be a great way to gain valuable experience and build up your bank account. But saving money can be tricky, especially with all the temptations to spend. Here are some tips for teens to help make the most of summer earnings and build a solid financial foundation.

Set Clear Financial Goals

Before you start working, consider what you want to achieve with your earnings. Do you need to save for college? Do you want to build an emergency fund? Do you need to buy a car? Having clear goals will motivate you to save. Use the Notes app on your phone to write down your goals. Or go old-school and put everything on paper and keep your goals somewhere visible as a constant reminder to keep you on track!

Create a Budget

A budget is your best friend when it comes to managing money. Start by listing your income and expenses. Include all the money you plan to earn and everything you need to spend on, like transportation and food. Allocate a portion of your earnings to savings and stick to it. Remember to leave some room for fun—saving doesn’t mean you can’t enjoy your summer!

Open a Savings Account

If you don’t already have one, consider opening a savings account. A savings account is a safe place to keep your money and earn a little interest over time. Maine Family FCU offers an Adolescent$ teen club with educational resources to help you become money-smart. Plus, having your money in a savings account makes it less tempting to spend than if it were in your wallet.

Automate Your Savings

You can automatically deposit a certain percentage of your paycheck into your savings with automatic transfers. This way, you’ll save without thinking about it and be less tempted to spend the money you don’t see.

Track Your Spending

Keeping track of where your money goes helps identify areas where you can cut back. Use a budgeting app like Fudget or You Need a Budget (YNAB) to monitor your expenses. Seeing your spending habits can be eye-opening and encourage more mindful spending (maybe it’s time to cut down on the Starbucks or Aroma Joe’s runs 😉). And learning to budget early in life will help you better manage your finances in the long run!

Avoid Impulse Purchases

It’s easy to splurge on things you don’t need, especially when you have cash. Before making a purchase, ask yourself: Do you truly need the item, or is it something that would be nice to have? Implement the 24-hour rule: wait a day before buying something you want. Often, the urge to buy fades, which saves you money in the process.

Look for Discounts and Deals

When buying something, always look for discounts, coupons, and sales. Many apps and websites are dedicated to helping you find the best deals. Every little bit saved adds up over time.

Learn About Investing

While saving is important, investing can help your money grow over time. Start by learning the basics of investing with beginner-friendly investment apps like Acorns or Robinhood. As your investment grows, consider working with a reputable financial advisor. Investing involves risks, so do your research and only invest money you’re willing to lose.

Stay Motivated

Saving money can be challenging, especially when there are so many fun things to spend it on. Stay motivated by reviewing your goals frequently and celebrating small milestones. Reward yourself when you hit savings targets, but keep it reasonable.

Get Creative with Earnings

Look for additional ways to earn money beyond your summer job. Consider freelance work, tutoring, or selling crafts and goods online. Diversifying your income streams can help you reach your financial goals faster and teaches valuable skills.

Saving money as a teen can set you up for a successful financial future. Make the most of your summer earnings by setting goals, creating a budget, and making informed spending choices. Remember, it’s not just about how much you earn but how much you save. Happy saving!