3 Simple Ways to Start Saving Money Right Now!

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Building wealth can be intimidating, especially for young people. When the term "saving" is mentioned immediately, many people think about retirement and emergency funds. 

The concept of saving tends to be overlooked because so much work needs to be done to build wealth. 

Don’t know where to start? 

Fortunately, there are 3 simple ways you can incorporate as of today:

Create a Savings Account

Whether you have money saved up already or are just starting, having a savings account is the first step in wealth building. You can either open a savings account at your local bank or credit union near you. Many banks and credit unions offer zero fees with a low minimum deposit. 

To open a savings account, you’ll need:

1. Parent/guardian to co-sign if you’re not 18 years old yet. Not only will this help develop a saving habit, but you’ll be restricted from accessing the funds easily to avoid overspending. Once you’ve turned 18, you can adjust the option to have access to the account. 

2. Form of identification. Banks/credit unions need a way to ensure they’re checking all the boxes and protecting against identity theft. You could use a passport, birth certificate, student ID card, or social security number.

3. Address. To prove you’re not moving around countries, having a utility bill or school document can showcase you’re living in the area. 

4. Small deposit amount in hand. To create a new savings account, you’ll need some money inside to prevent the account from locking. Depending on the bank/credit union, you could put in as little as $5 to $25. 

Once you begin to deposit money little by little towards your account, you’ll immediately qualify for building interest over time. In addition, there are many benefits to opening a savings account such as security, earning interest, and financial discipline. 

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All banks and credit unions have security measures in comparison to saving cash at home. If there were theft or natural disasters, the money could be lost without insurance. Whereas the government backs a savings account with FDIC regulations to ensure you receive the money you’ve deposited. 

When you have money deposited into a savings account, you’ll start to earn interest over time. Within a few years, the money continues to grow without any necessary work involved. To see how much you could earn through interest, you can research bank/credit union interest rates because each other varies rates. 

Lastly, creating a savings account will help encourage you to form a habit of saving. Whenever you receive money from a job, gift, or allowance, you’ll be able to set some of it aside to help set yourself up for the future. 

Putting Money Aside

Now that you’ve done the hardest part, it’s time to begin the habit of saving. To help make the process easier for you, there’s an option to automate your savings into the account. This means, you determine a set amount whenever you have money inside your checking account. It could be as little as $10 or more depending on your comfort. Life can get busy quickly and automating your savings will do the work for you.

Over time, you’ll develop a saving habit by placing your money into the account without manual work, it’s done the work for you based on the schedule you’ve set up. Within a matter of time, you’ve built up your savings. 

The question you may ask is whether automating works. Here are some benefits to automating your savings:

1. Out of Sight - This means you won’t be tempted to withdraw the money to spend it. In a sense, automating your savings is “paying yourself first” before you spend all the money you’ve deposited.

2. Reduce Spending - Setting a specific amount automatically helps you avoid mixing your money with your checking account. 

3. Building Discipline - Automating your savings will develop a consistent routine and will slowly add up to a larger amount over time. 

Deals, Bargains, & Coupons

The journey of wealth building also includes the utilization of finding deals, bargains, and coupons. This strategy is a smart way to help teenagers find ways to reduce spending and acquire lifelong financial habits. 

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Here are some strategies with deals, bargains, and coupons:

1. Seasonal Sales - Many businesses are reducing the price at specific events such as Christmas, Black Friday, New Year, new product releases, buy one get one free, trade-ins, and clearance.

2. Coupons - Depending on the business, there could be surveys, sign-ups, and receipts offering coupons for your next purchase.

3. Cash-Back - Platforms such as Rakuten and Honey partner with businesses to offer discounts along with money back. If you’re already going to buy something, utilizing these platforms can help earn back the money you’ve spent. 

There is no shame in being cheap, rather you develop financial habits such as:

• Reduce impulse buying - Whenever you find something that catches your attention, businesses want to capitalize on it by creating FOMO. This can help reduce the chances of overspending and making more intentional purchases.

• Decision-making skills - Instead of immediately buying something, you could find alternatives or distinguish the difference between a need vs a want. 

• Budgeting - Establishing a budget and how much you’re willing to spend can help save money on other items such as food, clothes, supplies, and other items. 

That’s the 3 simple ways you can start saving and implementing immediately. However, it’s important to understand the time and patience required to build wealth. These results will no come immediately, rather it’s setting up the foundation for how to develop better financial habits and result in using the money you’ve earned wisely. 

The information provided on MoneyWiseTeen’s website is for general informational purposes only. There are no guarantees about the accuracy of the content and doesn’t substitute for personal financial decisions. 

MoneyWiseTeens is committed to empowering teens with the financial knowledge and skills to build a secure and prosperous future. Our platform is dedicated to helping educate teenagers on ways to develop effective financial management. We offer valuable resources and guidance to help teens make informed money decisions.