Our Money Saving Tips

Our Money Saving Tips

Our top 5 ways for how to save money as a teenager

You’re young, you know you should start planning your future, but it seems scary, far too time-consuming and far too soon. It’s way down the list of priorities.

Don’t hate us, but while we’ve got your attention, maybe you could consider the following money saving tips (it’ll only take a minute – plus they’ll help you save and show what’s possible with your money):

1: The ‘B’ word

This word sends shivers down the spines of most fully grown adults, never mind those in their teens or early twenties. But a budget doesn’t have to be limiting, or mean you never go out and see your friends. A good budget should just give you some parameters to live inside, a bit like bowling when they put the barriers up stopping the ball constantly ending up in the gutters. You can still have fun, but you’re less likely to mess up… and more likely to get a strike! Start small, £10 a week, £20 a month. It all adds up, and before you know it (if you don’t spend it) you could surprise yourself with how much you’ve squirrelled away.

2: Workin’ 9 to 5

The absolute best way to kick start your savings pot is to get a job. Having a means of income massively helps your chances of succeeding in your goals. But we know that studying may mean you can’t devote time or brain power to something else.

There are jobs that are perfect for a few hours a week, coffee barista? Pizza delivery driver? Or if you’re the crafty type, get making, upcycling or buying and selling. There’s money to be made on resale sites or using your skills to make things from scratch. You just need to have a little time and patience.

3: Use your discount

If you’re a student it’s more than likely you’ll get a student discount. You’ve got a card that gets you a pretty much universal 10% off EVERYTHING. DON’T go buying things you don’t need just because you can, but DO use it to your advantage. After all it’s like having a superhero power!

Plus it’s never been easier. You just flash your card at checkout or enter a number online and that’s it! Super student budgeting the super easy way.

4: Spend no money days

A few quid here, a few quid there, what’s it matter? Well, that coffee you’re buying to treat yourself each day could be adding up to £100s every year. It’s the same for those little impulse purchases; those items you don’t need but really, really want in the moment.

So you could consider one day a week where you spend nothing. This starts good habits and gets you thinking about where else you could save money, packed lunches, buying season tickets for transport, the options are endless.

5: Plan ahead

Christmas, birthdays, holidays, car insurance – these are consistent. They aren’t ever going to go away and they happen on the same date every year. See them as a gift – yes they are annoying and expensive, but you already know they’ll happen, so they’re easy to plan for. Saving for these over the course of the year doesn’t hurt quite so much. Yes, this takes more restraint than not buying the coffee from point 4, but believe us when we say it’ll change your world.

Now when your friend invites you on a last minute holiday, you’re far more likely to say yes than if you’re scraping by month to month.

Great, I’m saving and not spending as much; but what am I supposed to do with this money?

  • Long term gains: If you’re looking to invest for at least five years, or longer, there’s a chance of growing your money faster than if you put savings into a regular savings account.
  • Tax benefits: You won’t pay tax on any profits you make.
  • Flexible: You can invest in the right opportunities for you.
  • High investment opportunities: you can invest up to £20,000 each tax year.
  • Child Trust Fund: These are children’s savings accounts made available to children born between 1st September 2002 and 2nd January 2011. You may have one that’s about to mature or has just matured. Moving this money to an ISA and adding to that fund could give you a great start in life.

It is worth noting however, that investing comes with risk

The value of your investments and any income from them can go down as well as up and you may not get back the original amount invested. Tax allowances and the benefits of tax-efficient accounts are subject to change and tax treatment depends upon your individual circumstances.

If you do have a Child Trust Fund and you’re interested in making your savings work harder, maybe we can point you in this direction.

17 March 2021
Alban Lhonneur
Alban Lhonneur
Fund Manager
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Soon to be turning 18?

From your 18th birthday your Child Trust Fund will automatically transfer into a matured Child Trust Fund and you’ll have full control of the account. Find out the full process and what options you have with your account by using the button below.

Turned 18 and ready to make an election?

Only once you turn 18 you are able to make an election on your account. If you’re ready to make a decision you can do so by downloading our CTF Election form. Simply fill it in and send it back to us whatever you decide to do. Download the form using the button below.

Important Information

Important information: Past performance is not a guide to future performance. Your capital is at risk. The value of investments and any income is not guaranteed and can go down as well as up and may be affected by exchange rate fluctuations. This means that an investor may not get back the amount invested. This document is not investment, legal, tax, or accounting advice. Investors should consult with their own professional advisors for advice on any investment, legal, tax, or accounting issues relating to an investment with Columbia Threadneedle Investments. The mention of any specific shares or bonds should not be taken as a recommendation to deal. Columbia Threadneedle Investments does not give any investment advice. If you are in doubt about the suitability of any investment, you should speak to your financial adviser. The analysis included in this document has been produced by Columbia Threadneedle Investments for its own investment management activities, may have been acted upon prior to publication and is made available here incidentally. Any opinions expressed are made as at the date of publication but are subject to change without notice and should not be seen as investment advice. This document includes forward looking statements, including projections of future economic and financial conditions. None of Columbia Threadneedle Investments, its directors, officers or employees make any representation, warranty, guaranty, or other assurance that any of these forward-looking statements will prove to be accurate. Information obtained from external sources is believed to be reliable, but its accuracy or completeness cannot be guaranteed. Issued by Threadneedle Asset Management Limited. Registered in England and Wales, Registered No. 573204, Cannon Place, 78 Cannon Street, London EC4N 6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.

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