8 Tips to Help You Save Money as a Teenager

Saving money as a teenager is a smart financial habit that can set you up for success later in life.

While it may seem tricky, especially if you’re still in full-time education or have a part-time job, it’s far from impossible. With the right strategies, you can build savings, gain financial independence and prepare for unexpected expenses. Research by GoHenry found that more than four in ten kids aged 6-18 (42%) say that recent events like the Cost of Living crisis have made them more likely to start saving early for big life events.

Even if it feels impossible now, there are things you can do to set you on the path to financial success – and you don’t need to be rich, you just need the right strategy. Here’s how you can start saving effectively.

8 Ways you can save money as a teenager

1. Turn a hobby into a side hustle

Turning a passion into a side hustle is a great way to earn extra income.

If you’re creative and enjoy drawing, painting, or crafting, you could sell your work on platforms like Etsy to earn some extra money while doing something you love.

If you’ve got skills in writing, design or tutoring, you could offer your services online – plenty of freelancing sites online make it simple to work with people from all over the world.

Or, if you want to do something locally, why not offer services like car cleaning, window cleaning, or bin cleaning in your neighbourhood? Most towns have local community pages on Facebook where you can offer your services for free – just make sure you follow any rules the community admin may have set!

Check out our blog post on how to start a side hustle for more information.

2. Take advantage of student savings

One of the simplest ways to save money as a teenager is by making the most of student discounts. With just a student ID or a free account on a student discount platform, you can instantly cut costs on your regular spending.

Platforms like UniDays, Student Beans and TOTUM offer deals on everything from clothing and tech to food and travel. Plus, they’re easy to sign up for using your school or college email address.

For example, McDonald’s often has deals or promotions aimed at students. Given that it topped the list of retailers where under-18s spent the most money in 2024, that could quickly add up to big savings.

From clothes discounts at ASOS to a price reduction on your Spotify subscription, your student loan will go a lot further than you'd think. Many independent cafes, gyms, cinemas and even hair salons offer student savings if you spend a little time shopping around.

You can also save a third off train fares by getting a 16-25 Railcard from travel firms like Trainline or Railcard. While prices on these start at £35 for a year, they could be worth the investment if you travel by train a lot.

My colleague Persia-Lili Moharerr, shares her top tips for saving money on travel:

"The easiest way to save money on your transport costs is by investing in a railcard. I first applied for one as a student, and have reapplied for a railcard every year since. What’s great about getting a railcard, is that it doesn’t matter if you travel by train frequently or hardly at all – you’ll find that you can redeem the cost of the railcard in as little as 2 or 3 journeys, that’s how much money you save!

As someone who travels by train multiple times a week, I love booking my train tickets and receiving the notification to let me know how much money I’ve saved on my journey, it’s such a rewarding feeling!"

3. Save big with secondhand finds

Buying secondhand is one of the smartest and most sustainable ways to save money without sacrificing your style or the things you truly love.

When it comes to fashion, platforms like Vinted and Depop have made it easier than ever to find stylish clothes at a fraction of the original price. They make building an entire wardrobe of preloved goodies easy, and you can even sometimes snag brand-new items with the tags still on.

But shopping second-hand isn’t just limited to clothes. If you’re looking for gadgets or electronics, you can save money with sites like Music Magpie and CeX, which offer phones, tablets, and games consoles at prices much cheaper than buying new. Some items are refurbished and even come with warranties, so you know it won’t be money down the drain!

For books or study materials, check out World of Books, AbeBooks, and The Works – or better yet, head to your local charity shops or library. Many libraries offer free access to e-books, which can save you even more.

Top tip: Occasionally, you can find an absolute bargain on secondhand sites. Instead of enjoying it yourself, resell it for a profit. If you know what you’re looking for, you could turn your love for fashion, tech, or books into a side hustle.

4. Use subscription-free alternatives

On average, UK consumers spend £41 per month on subscriptions, which adds up to a whopping £492 each year!

If the “bank of mum and dad" pays for these subscriptions in your household, feel free to skip this section. However, if you’re paying for these subscriptions yourself, here are a few things you can try to save a bundle.

Music is a great place to start. Instead of paying £10.99 for Spotify Premium, try using Spotify Free or YouTube Music Free. Yes, you’ll have to deal with the occasional ad, but it’s a small price to pay to keep that money in your pocket.

Streaming services are another common money drain. Subscriptions to Netflix, Disney+, and others can quickly add up, but plenty of free options are available. BBC iPlayer offers a wide range of shows and films if your household has a TV license, and YouTube has endless entertainment, education, and everything in between - all available for free!

Even fitness doesn’t have to come with a subscription fee. Instead of paying for a gym membership or expensive workout apps, try free apps like Nike Training Club or Couch to 5k. These apps offer structured workouts and routines that are perfect for beginners or anyone looking to stay active on a budget.

5. Host a clothing swap with your friends

Fashion trends move fast, and trying to keep up can put a serious dent in your savings.

According to HyperJar, 4 in 10 parents say their kids spend more on appearances than they did, and spending at beauty retailers like Boots and Sephora has surged among UK teens.

You and your friends probably have clothes, accessories, or even beauty products that you no longer use, but that are still in great condition. By bringing them all together, you can trade pieces, try out new styles, and give your wardrobe a refresh – all while saving money!

It’s a win-win: you get rid of items you no longer need or want and pick up something new to you in return.

Swapping isn’t just good for your bank account – it’s good for the planet, too. Fast fashion can be wasteful, and swapping encourages a more sustainable way of updating your style. Plus, with trends like underconsumption taking off on TikTok, saving money while being eco-conscious is more on-trend than ever.

Check out our blog post on how to look good on a budget for more information.

My colleague and Fashion money-saving editor Ruby Lizon-Walker, understands the importance of clothing swaps:

"Clothing swaps are such a fun way to refresh your wardrobe without spending anything! I’ve swapped everything from jackets to jewellery with my friends, and it always feels like shopping, but free. It’s also a great excuse to hang out and inspire some creativity with your style."

6. Turn loose change into actual savings

The average person has around £26.99 in loose change lying around at home, hidden in drawers, pockets or under sofa cushions. Instead of letting those coins gather dust, collect them in a savings jar.

Make it the go-to place for any coins or leftover notes you have at the end of each week, and you’ll be surprised how quickly it will start to add up. You might want to give your jar a goal – maybe you’re saving towards a new phone, a day out, or even just a treat fund so you can splurge with your friends. Learn more about how to build an emergency fund for the future.

Once your jar fills up, take it to the bank or use a coin deposit machine to move it into your savings account. Watching the total grow can be motivating, and turning small, everyday habits into actual savings is a powerful way to feel more in control of your money.

Banking apps like Monzo offer this in digital form, too. You can turn on roundups on the app so that whenever you use your card to pay for something, the app rounds up the amount to the nearest pound and pops the pennies into the pot. You might only be saving 10p at a time, but Monzo estimates that, on average, people save an extra £129 a year without changing their habits.

7. Save money one snack at a time

Whether it’s a bottle of Coke on your lunch break, a meal deal while you’re out with friends, or snacks at the cinema, little purchases can soon add up.

Making or taking your own can lead to serious savings without giving up the things you enjoy.

Start with lunch. If you regularly buy food on the go, try making it at home instead. Making your lunch at home can save you over £100 per month, and it’s healthier and cheaper than many options available elsewhere.

If you’re a regular at coffee shops, using a reusable cup isn’t just good for the planet - it can also save you money. Many chains offer discounts when you bring your own cup, meaning your morning brew could cost less by being a little prepared.

Cinema snacks are another way many people get stung. Instead of spending £13.99 on popcorn and a drink, bring your own from home. Most cinemas allow sealed snacks and drinks – just double-check their policy to be sure.

If you’re still tempted by a meal deal, using a supermarket voucher code can also be a great way to save. A few minutes of searching for a deal before you shop can add up to big savings over time.

8. Challenge yourself to a ‘no-spend’ month

If you’re serious about saving money, one of the most effective ways to hit reset on our spending habits is by taking on a no-spend month. The idea is simple: For one month, challenge yourself to cut out all non-essential spending. That means no impulse buys, unnecessary snacks, or new clothes – just the essentials.

Before you spend money on anything, pause and ask yourself: “Do I need this, or do I just want it?" If it’s a want, skip it. If it’s a need, go ahead, but try to find the most cost-effective way to get it. This mindset shift can stop you from making dozens of small purchases that add up without you noticing.

To help stay motivated, track your progress by using budgeting apps, a notebook, or our savings calculator to see how much you’re saving week by week. It’s satisfying to see your progress in real time, and it helps you stay focused on the goal.

You could even try trending challenges like “Project Pan," where you commit to using all your existing health and beauty products before buying anything new. It’s huge on TikTok and could save you loads of money.

Why it’s important to save money as a teenager

Saving money as a teenager is important for developing good financial habits because if you develop bad habits early on, it can be hard to break them. But, it’s also good for helping you achieve your personal goals, because so many of the things you’ll want to do throughout your life will, unfortunately, cost money. Aviva revealed that parents estimate their children, aged 16 and under, have saved £416 on average from their pocket money – this is a great start and shows that young people are aware of how important saving money is.

Here are a few other reasons to get a good handle on your savings as early as possible.

• It provides financial independence – Extra cash allows you to rely less on others, giving you control over your finances. Whether it’s saving for holidays, a night out or a weekend away, financial independence lets you enjoy experiences without constantly asking for money, which, let’s face it, can be awkward.
• It builds financial safety – Savings act as a safety net for unexpected expenses, such as phone repairs or car maintenance (when you pass your test, for example. Financial security reduces stress and anxiety and ensures you’re prepared for surprises.
• It teaches financial responsibility – Learning to manage money early prevents financial struggles in the future. If you develop smart habits now, when the time comes to pay rent, buy a house or invest money in some other way, you’ll be in a better position to make intelligent and informed choices – and take fewer risks.

Sebrina McCullough, director of external relations at Money Wellness, emphasises that building financial habits in your teens leads to smarter money management in adulthood.

‘With such a large focus on the peak weeks of the season, it is not uncommon for operators and owners to discount weeks in January to increase occupancy. And if prices are not reduced, you may be able to benefit from various special offers such as complimentary transfers, massages, ski instruction or maybe even a helicopter tour!'

Save smart, spend wisely

Saving money as a teenager might seem difficult, but with smart strategies, it’s achievable. You can build financial independence and security by taking advantage of student discounts, buying secondhand, and finding creative ways to earn extra income. Start small, stay consistent and watch your savings grow!