One of the most difficult things to tell a teenager is to save their money. One of the most difficult things to tell myself is to save my money! Why put my checks in the bank when Starbucks and Chick-Fil-A are only 5 minutes from my house? However, as painful as it may seem, one of the best times to save during your life is when you are a teenager.
Reasons why you need to save your money NOW!!!
- You have parents or a parent that will feed, clothe, and shelter you until you are 18, and even afterwards if you’re lucky or just too lazy to leave the house. All of your money can go towards savings if you so desire
- There is no downside to any experiments in investing. You can buy stocks and learn what works and what doesn’t work without dealing with the consequence of not having enough money to cover bills/rent
- If you want to be a little more conservative, you can invest in Bonds and CDs and get an extra cash infusion a few years down the road
- You can minimize your college debt, or have a little extra spending money if you get a scholarship or have generous parents
- You start learning good money habits that can only be helpful down the road
As you can see, there are many good reasons to start saving money from a young age. In my opinion, #5 is the most important reason. If you start with $1,000 in savings, that can grow to $10,000 in your first few years out of college, $100,000 within the decade, and even $1,000,000 by your 40s… I don’t know about you, but I sure wouldn’t mind being a millionaire!
For many teenagers, getting a first job is a rite of passage, and holding that first paycheck in your hands can be exciting and even overwhelming. But saving even a small portion of that check can prepare you for the future and help you save for all big-ticket items your teen heart desires, such as this $379.95 pair of Beats Studio Headphones. So start saving now, and enjoy the benefits in both the near future and the far future!