Top Tips To Start Saving Young

When I think back to how I thought about money and the mistakes I made, one thing I wish I’d done is to start saving young. I got my first job when I was 15 at the local football club. My earnings weren’t much, but neither was my outgoings. And then I moved to a more ‘proper’ job in retail and my hours increased. Then I carried on full-time during university. But the idea to properly start saving didn’t come until later.

I really think there should be more money education during school. Although now it’s a little easier because you only have to search on the internet to find loads of articles about taxes, mortgages, savings, etc. Although if I was a teenager I don’t think that’s the first thing I’d be searching for. I do know if I ever have kids I want to teach them the value of money and the value of saving from an early age.

Here are some of my top tips to help start saving young.

Start saving young as early as you can

The earlier you start contributing to your savings the better. Savings can help set you up financially for the future be it for a house deposit, education, or whatever is important to you. If you start saving young it will be easier to continue adding to it as time goes on. And you’ll become used to saving. When I first started saving I had to start small as the idea of putting away even a portion of my earnings was tough. And I gradually increased my savings over time. But if you start saving young then you become used to it and the regular contributions to savings simply become part of your budget and a way of life.

Remember though there’s no amount too small to put away. By starting to save you’re setting up good habits and the money adds up over time.

Automate your savings

Make saving as easy and pain-free as you can by automating it. By setting up a standing order for how much you save you can automatically put it away when you get paid and you don’t have to think about it. The idea of saving then becomes a habit and you won’t miss the money as you never really had it.

Start saving young by utilising government help

If you’re saving for either your first home or retirement then think about opening a Lifetime ISA (LISA). Under the scheme, the government will top up any savings you make by 25% up to a total of £4,000 a year. Then when you buy your first home or hit a certain age for retirement you can cash out your savings including the government top-ups.

New schemes and initiatives come out every so often so it’s worth keeping your eye on what’s out there.

Avoid debt as much as possible

This may seem like a silly one, but try to avoid debt as much as you can. Now there are some kinds of debt that aren’t seen as bad such as student loans. But ‘bad debt’ like payday loans, high-interest credit cards, store cards and such should be avoided as much as possible. It’s possible to use credit to your advantage to help increase your credit score. But never borrow more than you can pay back. And borrow it from the right places.

Plus if you’re paying off debt it swallows up any surplus money you have making it harder to save.

Start saving young while you study

Getting a part-time job when you’re at school is a great way to start saving young as generally, you’ll have little to no commitments to pay for. But even when you’re at university and you have day-to-day living expenses it’s a great time to save. Student life is known for being expensive but if you get a part-time job alongside studying and make economical decisions around what you spend on you can start saving.

And if you do what I did and live at home during university there’s a chance you can save even more money. I wish I had hindsight and did that!

Did you start saving young? If not will you be teaching your kids to do so?

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