Financial Tips for Teens & College Students

The decisions you make now about saving, spending, and budgeting influence your ability to achieve important life goals – whether that's graduating college debt-free, securing your first apartment, purchasing a car, or building an emergency fund for unexpected expenses. Starting early gives you a powerful advantage: time for your money to grow through compound interest and consistent saving habits.

Understanding these fundamental principles now can help you avoid common financial pitfalls and set yourself up for long-term success. Let's explore some basic saving strategies for teens & college students to build strong and successful financial habits early.

• Break goals into short-term (e.g., concert tickets, textbooks, traveling home to visit family) and long-term (e.g., study abroad, emergency fund, tuition bills).
• Use SMART goals: Specific, Measurable, Achievable, Relevant, Time-bound. (Be very specific and detailed when making SMART Goals)

• Track income (allowance, part-time job, scholarships) and expenses (food, transport, entertainment, bills). Identify what are your “wants” versus what is a “need”.
• Use free apps (like Mint, Goodbudget, EveryDollar, Rocket Money) or just a simple paper budget planner to stay organized.

• Treat savings like a fixed expense—set aside a portion of income before spending.
• Even small amounts like $5–$10 per week adds up over time. ($5 x 52 weeks = $260 or $10 x 52 weeks = $520)

• Look for accounts with no monthly fees, no minimum balance, and high interest rates.

• 50% for essentials (food, transportation, gas, etc.)
• 30% for wants (entertainment, shopping)
• 20% for savings and debt repayment

• Wait 24 hours before making non-essential purchases.
• Use a “wish list” instead of buying immediately.
• Add the want to your parents’ birthday/Christmas list.
• Make a pros and cons list for big purchases and think about the full benefits of the purchase. (e.g. how long will this purchase be useful for or how long do you think you will use it?)
• Think about how much it will cost (price of item, taxes, shipping, upkeep, monthly fees, and any damages that may occur)

• Use student IDs for discounts on software, streaming, travel, local businesses, and local fun spots.
• Apps like UNiDAYS and Student Beans help find deals; they will also alert you when these deals become available.
• Look for websites that have certain events when school starts. (APPLE has an education store with significant discounts)
• Sign up for rewards and coupons (Credit Card Rewards, Cash Back, and Travel Points)

• Consider tutoring, pet sitting, dog walking, yard work, delivery, selling school notes, etc.
• Use those earnings to give your short and long-term savings a boost.

• Set up automatic transfers from checking to savings.
• Help build consistency without thinking about it.
• If you do not see it, you do not think about it.

• Review savings goals and adjust budget as needed.
• Celebrate milestones to stay motivated.

Taking Control of Your Financial Future The strategies outlined above provide a solid foundation for building healthy financial habits. Starting with even one or two of these strategies can create great momentum. Consider beginning with automating a small weekly transfer to savings or tracking your expenses for a month to better understand your spending patterns. As these behaviors become routine, you can gradually incorporate additional strategies.

The compound effect of good financial habits extends far beyond your bank account balance. Financial stability reduces stress, increases your options for career and education choices, and provides security during unexpected life events. The time and effort you invest in learning these skills now will pay dividends throughout your life.

If you're ready to take the next step, consider speaking with a financial professional about opening a student savings account or learning more about budgeting tools that fit your lifestyle. At First Southwest Bank, we understand the unique financial challenges facing young adults and are here to support your journey toward financial independence.