Hey teens, listen up! If you want to build up a good amount of savings over time and be prepared for unexpected expenses, you should be saving 20% of your income. This includes both earned income and pocket money. Don’t forget to also have an emergency fund that covers three to six months’ worth of expenses. To make saving easier, create a budget, look for ways to earn extra money, and set up automatic transfers to your savings account. So, start saving now and thank yourself later!
How much should a 13 year old save money?
As a teenager, it’s important to learn how to manage your money properly. You might be wondering how much you should save and what you should be saving for. Ideally, teenagers, like adults, should be saving 20% of their income, whether that’s earned or pocket money, or a combination of both. This might seem like a lot, but it’s important to start early and develop good habits that will last a lifetime.
Why save 20%?
Saving 20% of your income might seem like a lot, but it’s a good rule of thumb to follow. This will help you build up a good amount of savings over time and ensure that you have enough money to cover unexpected expenses. It’s also a good way to start saving for bigger goals, like buying a car or going to college.
What should you be saving for?
In addition to saving 20% of your income, it’s important to have an emergency fund. This is money that you set aside specifically for unexpected expenses, like car repairs or medical bills. Ideally, your emergency fund should be enough to cover three to six months’ worth of expenses.
How can you save 20%?
Saving 20% might seem like a daunting task, but there are a few things you can do to make it easier. First, make a budget and stick to it. This will help you see where your money is going and where you can cut back. Second, look for ways to earn extra money, like babysitting or doing odd jobs for neighbors. Finally, make saving a priority. Set up automatic transfers to your savings account so that you don’t have to think about it.
As a teenager, it’s important to learn how to manage your money properly. Saving 20% of your income and having an emergency fund are two important steps you can take to ensure that you’re prepared for unexpected expenses and have enough money to achieve your goals. Start early and develop good habits that will last a lifetime.
References for « How much should a 13 year old save money? »
- « How Much Should Kids Save? » by Dave Ramsey
- « How to Teach Kids to Save Money: 9 Tips for Parents » by Brian Martucci
- « How Much Should Your Kids Be Saving? » by Miriam Caldwell
- « How Much Should Your Child Save? » by Amy Fontinelle
- « How Much Should I Have Saved By 13? » by David Weliver
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