How Much Money Should A Teen Have Saved By 18?
Exactly how much money a teen should have saved by the age of 18 will vary based on factors such as the teen's income, expenses, and financial goals as well as how much money their parents are contributing to their lifestyle. However, it is important for teens to start saving money as early as possible in order to develop good financial habits and prepare for the future. This can include setting aside a portion of their income from part-time jobs, summer jobs, or allowance, and investing it in a savings account or other investment vehicles. One potential goal for teens could be to save at least 10-15% of their income, which can add up to a significant amount over time. For example, if a teen earns $500 per month from a part-time job. they could aim to save $50-75 per month. This could amount to $600-900 saved for each year that they work before turning 18 years old. Teens should also consider their future financial needs and goals, such as saving for college tuition or a car. This could mean increasing their savings rate or finding additional sources of income to reach their desired savings target.