The monetary pressures that high schoolers face today, such as advertisements and social trends, can easily lead to unhealthy spending habits leaving little room for essential expenses. Early on as a teenager, especially one with growing financial obligations, it is crucial to preserve healthy habits of spending and saving to ensure a safety net for future financial responsibilities. Thankfully, there are many resources available for teenagers to use that will provide the necessary steps to maintain financial stability.

Open a savings account
A wise step as a teenager is to open up your own savings account at a bank. Having to keep track of loose cash can be annoying, and you have a high risk of misplacing it. Also, having a savings account offers an emergency fund for any situations that demand expenses. It is a great way to keep your money in a secure place, while also allowing you to not be tempted to buy things since you wouldn’t have to think about your money so often. Additionally, you can accumulate a certain level of interest in your account, where you earn a minuscule amount of money that compiles over time.

Discuss with your parents or guardians about setting up a savings account at your preferred bank. Some banks require an initial deposit to open up a new account, however, most don’t require one. You can even set up multiple separate savings accounts if there are any large purchases you want to save for such as vehicles, vacations, or housing. You can decide whether you prefer signing up for an online bank or seeing a physical bank to access your account.

Get a job
In order to actually have money to save, it would be wise to adopt a more stable and consistent form of income. Some typical ways high school students start earning money is through an allowance from their parents or from odd jobs. However, having an actual job would not only increase your financial responsibilities, but also gives you larger amounts of pay that can be contributed to savings, goals, or stocks.

Getting a job provides a concrete economic foundation that would greatly benefit you, especially as a growing individual with many financial responsibilities. In many jobs, you will receive employee benefits that offer discounts and insurances that will help you with healthcare or retirement plans. Discuss with your family or school counselors, build a resumé, and search locally to begin the process of getting a job, while also including the above listed tips to help provide you with a stable system to save more money.

Identify and compare “wants” versus “needs”
When controlling spending habits, it is important to identify what is a need and what is a want. A need accounts for the things that are the most important to everyday life such as food, water, clothes, and transportation. A want consists of things that we derive from our own personal interests, or from the persuasion of outside influences. These include designer clothing, snacks, online shopping, games, technology, and other unnecessary purchases.

Always ensure to save whatever amount of money you make and put it towards needs first. Make it a habit to remain disciplined whenever you encounter products that you feel would prompt you to spend unnecessarily. Take responsibility for distinguishing your wants and needs, and it may help to consult an adult to achieve a better understanding on what things are important and what isn’t as necessary to have.

Set clear goals
Determining specific financial goals for the future will help you stay motivated and focused on saving money. Whenever you make money, try to dedicate at least 10 percent of that income into a savings account that is allocated towards that future expense. These may include upcoming education such as college, or even the goal of reserving money for any costly circumstances like medical emergencies.

Goals also provide the framework for budgeting. High schoolers can work backwards and determine how much money they need to regularly set aside to achieve their goal. Even accomplishing small financial milestones, like saving a certain amount of money, accounts for progress that students should feel proud of.

Invest in stocks
Investing in the stock market provides another way for high schoolers to grow their money, potentially offering higher returns than traditional savings accounts. It also fosters financial literacy by allowing students to become more familiar with market trends and diversification.

However, it’s important to start with a small amount of money and to spread it across different stocks, as there is always the risk of losing money when involved in the market. If you wish to purchase stocks, seek guidance from an adult or any financial advisors to navigate the stock market safely.