The Best Ways To Save Money as a High School Student (original) (raw)

If you have a job while in high school, chances are you’ve got a long list of fun things to spend it on. But before spending all your hard-earned cash, consider saving some of your paycheck for the future.

By learning how to save money as a high school student, you can prepare for major goals such as buying a car, getting your own apartment, traveling after graduation or paying for college. We at the MarketWatch Guides team will provide some strategies to help you get started.

Key Takeaways

Advertisement

The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.

Featured Savings Accounts

FEATURED

Lending Club

4.3

APY 3.50%

Bonus N/A

Min. Deposit Amount $0

Earn up to 4.75% APY with $250+ deposits per month

SoFi Checking + Savings

4.8

APY 3.80%

Bonus Up to $300

Min. Deposit Amount $0

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either 50(withatleast50 (with at least 50(withatleast1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR 300(withatleast300 (with at least 300(withatleast5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.

UFB Portfolio Savings

4.6

APY 4.01%

Bonus N/A

Min. Deposit Amount $0

Unlock up to 4.21% APY, Combine Freedom Checking with Portfolio Savings to boost your savings APY by up to 0.20%

Discover

4.6

APY 3.75%

Bonus N/A

Min. Deposit Amount $0

Why High School Students Should Start Saving Money

Budgeting is officially trendy. Across social media, it goes by many names, including “loud budgeting,” the “no-buy year” and the “no-spend challenge.” At its core, the message is the same — to reduce spending and stop buying nonessential items.

“Budgeting probably sounds boring and overwhelming. But trust me, getting into the habit of saving will be so worth it down the road,” said Steven Kibbel, a certified financial planner and financial advisor at Prop Firm App. “The earlier you start saving regularly, even for small amounts, the better off you’ll be later.”

As a high school student, you have time on your side. “If you started putting away $50 a month at 15 years old and kept at it until retirement at 65, you’d have over a quarter million dollars saved up,” Kibbel said, assuming a 10% annual return on your money.

Learning to budget and save money can also give you great financial habits entering adulthood. You’ll acquire money management skills, which put you in a strong position to control your spending and avoid debt.

Plus, numerous financial institutions offer checking accounts and savings accounts specifically for teenagers and young adults. They typically charge low or no fees and come with tools to improve financial literacy.

Setting Financial Goals as a High School Student

As a part of your budget plan, set short- and long-term financial goals. Short-term goals could include saving up for a new smartphone, a car or a trip with friends. You can usually hit these goals within a few months or years, making them feel much more achievable.

Long-term financial goals include building up an emergency fund for life on your own, putting a deposit down on an apartment or house, paying for college with fewer student loans or saving for retirement.

When you set goals, make them as specific as possible with a timeline, amount and purpose. Instead of saying, “I want to save more money,” you could say, “I want to save 5,000tobuyausedcarnextyear.I’llaimtosave5,000 to buy a used car next year. I’ll aim to save 5,000tobuyausedcarnextyear.I’llaimtosave250 a month until I hit my goal.” That way, you can imagine what you’ll do and how you’ll enjoy the money.

Creating a Budget for High School Students

A simple budget can help you find ways to save and feel confident about where your money is going. Start by listing how much you earn per month, and then split the income between your spending and saving goals.

The 50/30/20 rule can provide a good framework. Here’s how you’d divide your monthly income with this rule:

These numbers are meant to be flexible guidelines for your circumstances. If your parents cover most of your bills, you might not need to set 50% aside for essentials. That leaves you with extra money for fun or saving. If you want to hit your savings goals sooner, you could aim to save more than 20% of your monthly income.

Online budgeting apps and websites can help you set these targets and plan how to save money as a high school student, too. Goodbudget, Qapital and You Need a Budget (known as YNAB) are a few worth trying.

How To Find Income Sources as High School Students

Now is an excellent time to try earning extra cash as a high school student. A tight labor market could make employers more willing to hire high school students. According to Statista, the percentage of high schoolers working is the highest it’s been since 2008, with 20.3% of high schoolers ages 16 to 19 employed as of 2022.

For instance, you could get a part-time job at a local restaurant, grocery store or small business. You could also look for a summer job as a camp counselor, referee, golf caddy or lifeguard. If you want to work for yourself, you could try finding clients for dog walking, babysitting and mowing lawns. You could even create your own online business by developing online content, selling self-made goods or freelancing.

But don’t forget about your education as you focus on earning extra money. Class should still be your first priority, so don’t take on more work than you can handle during the school year.

Smart Spending Habits for High School Students

It can be challenging to save money, especially since inflation increased 2.9% between July 2023 and July 2024 . But there are a few spending habits that can help your money last.

For instance, Kibbel recommends following a 24-hour rule for spending. “Before making a purchase over a certain amount (say, $50), take 24 hours to think it over,” he said. “This simple trick can help curb impulse buying.”

You could also handle most spending with cash rather than a debit card or credit card. That way, you only bring what you can afford to spend while out, limiting your option to splurge.

It’s also a good idea to search for discounts on purchases, especially since retailers offer special deals for high school students. Major brands could give you 10% to 15% off (or more) because you’re a student. If you need help searching for discounts, check out a site such as Student Beans, which advertises student discounts from popular brands including H&M, Sephora and Nike.

Finally, let your friends and family know that you’re making an effort to save and trying to cut back on spending money. That way, you won’t feel pressure to spend more than you can afford to

Effective Saving Strategies for High School Students

These money-saving tips can also help you put more aside, both in high school and beyond:

Open a Savings Account

Keep extra money in a savings account, separate from your checking account for everyday spending. That way you won’t be tempted to dip into your long-term savings. When opening a new bank account, look for one that doesn’t charge monthly fees. You may also want to look into high-yield savings accounts, which have higher interest rates to grow your money for the future.

Automate Your Savings

Set up monthly automatic transfers to your savings account. If you have a job, you could schedule it right after payday. You’re more likely to save when you don’t have to think about putting money aside every time. Also, any gifts you receive from birthdays or for graduation can be put into savings as well. If your budget is already set, this isn’t money you will miss.

Cut Down on Unnecessary Expenses

Every cost you skip is money you save. Making coffee and lunch at home, carpooling with your friends to school and cutting back on clothes or video game spending can boost your savings.

Find Free and Low-Cost Entertainment

Consider how you can enjoy yourself on a budget. Rather than going to a movie, consider renting a movie from your local library, either in person or online. You could also search for free events hosted by your town or plan a picnic outside with friends rather than going to a restaurant.

The Bottom Line: Saving Money as a High Schooler

If you’re thinking about saving money as a high schooler, you’re already showing a ton of responsibility. By earning some income while in school, setting a budget and working hard to save, you can get a head start toward your life goals. For more advice, ask your parents for their personal finance recommendations. If they work with a financial adviser, see if that person would chat with you. With proper planning, you’ll develop the financial habits to be successful with your money.

“Saving is not about going without; it’s about making choices that set you up down the road,” Kibbel said. “Begin with small steps, be steady and that cash will multiply before you realize it.”

FAQ: About Saving Money as a High School Student

How much money you should save as a high school student depends on how much you work and your personal financial goals, but it’s a best practice to save at least 20% of your monthly income. From there, you can determine how much you should try to save as a high school student.

A 16-year-old may want to save money for a car, a vacation, college tuition or a new phone. In the long term, a 16-year-old could also save money for life after high school or college, an apartment deposit or an emergency fund.

High schoolers can save money by following smart spending and budgeting habits and setting savings goals. Some good habits to help high schoolers save money include cutting back on unnecessary expenses, looking for discounts, avoiding impulse purchases and automating spending.

The 50/30/20 rule is a financial planning tool that lays out goals for your monthly income. You use 50% for essentials such as food and gas, 30% for fun, optional spending and the remaining 20% for savings.

*Data accurate at time of publication