Wednesday, 27 November 2019

How To Encourage Your Teenager To Save More

Guest Post 

Regardless of how old you are saving money can be tough, But, it is particularly difficult when you are a teenager. At that stage of your life, there is so much you want to do and see. The chances are that if you leave them to their own devices they will end up spending an awful lot of money. Buying the latest gadgets and clothes is not cheap. 

It is all too easy for teenagers to lose control of their finances and end up with debts that may take many years to clear. So, teaching them how to keep control of their spending is vitally important. Here are a few suggestions to help you to do exactly that. 

teenager writing in a notebook, ipad and earphones on desk


Open a separate saving account for them

Even if you have already opened a Wealthify junior ISA saving account to take care of their long-term financial future. It is a good idea to open a traditional savings account for them too, one that they control and contribute to and can use for short term purchases. 

If you can do so, persuade them to have cash swept from their regular bank account into that savings account every month. It does not have to be very much to teach them the value of saving. 

Offer to match their savings

Offering to match their savings is a good way to incentivize them to save even more. It is an approach that works especially well with teenagers. You do not have to do so 100%, often just giving them an extra 10 to 15 % of what they save is sufficient to motivate them. 

Provide your teenager with the chance to spend more time at home


Most teenagers want to spend time with their mates, they want to enjoy each others company and to do so in private. However, being out and about is expensive. Even if it is just spending time in the park, the chances are they will buy food and drinks to consume while they are there. All of this costs money. So, if at all possible arrange things so that they can have their friends around at home while still enjoying some privacy. A snug or converted shed is ideal for this. 

They will really appreciate your opening up the home to their friends. Making everyone feel truly welcome is a sure-fire way to get your teenager to stay at home too and spend less money. It is also a very good way to reduce the chances of them getting into trouble.

Talk to them about recurring bills

Without really realising it we all tend to buy a lot of subscriptions. Typically, they are things that we rarely use. Teenagers are especially prone to doing this. So find a way to subtly point this potential pitfall out to them. 

A subtle approach usually works best

Usually, with teenagers, taking a more subtle approach works far better than outright nagging them. That includes helping them to save more. If you want to learn more about gentle approaches that work really well when influencing teenagers, you can do so here.


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