As a young adult, managing your finances can seem daunting. Between bills, loans, and attempting to have a social life, saving money can feel like an impossible task to overcome. However, you can start building a solid financial foundation with the right mindset and a few smart money-saving tips. In this article, I will share with you my favorite 10 saving money tips for young adults that you may not have considered before.
From cooking at home, and DIYing simple tasks, to taking advantage of student discounts, these smart money moves for young adults are both practical and effective. By the end of this article, you’ll have the tools you need to boost your savings account and start building financial security.
Without further ado, the following are 100 saving money tips for young adults that will change your life.
1. Set a budget and stick to it
One of the most effective ways to save money is to set a budget and stick to it. This is a critical step in managing your finances and achieving your savings goals. Whether you are young or old, you need a budget in order to turn your finances around and build financial resilience.
To get started, assess your income and expenses and create a realistic budget that accounts for all your monthly bills, such as rent, utilities, and groceries. Remember to include any variable expenses, such as entertainment, dining out, or that random soda you buy from a vending machine. Once you have a budget in place, make a commitment to stick to it. This means avoiding unnecessary purchases and finding ways to cut back on expenses. By holding yourself accountable, you’ll be able to track your progress and stay on track toward your financial goals.
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2. Cook at home your own meals instead of eating out
One of the best-saving money tips for young adults is to cook your own meals. Cooking at home instead of going out to eat is a smart way to cut back on expenses while still enjoying food with friends and family. Not only that cooking your own meals generally healthier, but it can also be a fun and rewarding experience. To make the most out of cooking at home, start by planning your meals for the week and making a grocery list. This will help you avoid impulse purchases and ensure that you have all the ingredients you need.
When cooking, try to make extra servings so you can have leftovers for lunch or dinner the next day. This can be a great way to avoid the temptation of grabbing food on the go. Additionally, consider meal prepping on the weekends to save time during the week. This can be as simple as chopping vegetables or marinating meat in advance.
To make cooking at home more enjoyable, involve your friends or family in the process. Plan a potluck dinner or host a cooking competition. This can not only save you money as a young adult but also be a great way to socialize and bond with those around you.
By cooking at home, you can save money and still enjoy delicious food. Plus, by following these tips, you can make the experience more enjoyable and less time-consuming.
3. Use cash instead of credit
We cannot talk about saving money tips for young adults without covering the way you use your credit accounts. Your behavior and activities toward credit accounts such as credit cards pave your way to success or long-term financial struggle. Are you tired of getting yourself into unnecessary credit balances? Most young adults usually spend more than necessary due to the feeling that they have a long life ahead of them. The reality is that time is money and the more you can save ahead of time, the higher the chances you will become financially free. If you are not with using credit accounts such as credit cards, start using cash instead.
Using cash instead of credit is a powerful tool for managing your finances effectively. When you use credit cards, it can be easy to lose track of your spending and end up in credit card debt. By using cash, you can set a budget for yourself and stick to it. Seeing physical money leave your hands can also help you be more mindful of your spending habits.
In addition, using cash can also help you negotiate better deals when shopping. Many stores offer discounts for cash payments because they do not have to pay credit card companies processing fees. By paying with cash, you can save money on your purchases and potentially even negotiate lower prices.
However, it is important to note that using credit cards responsibly can also be beneficial for building credit and earning rewards. It all comes down to finding the right balance between using credit and cash.
By using cash, you can save money and stay within your budget. But, when it comes to making larger purchases or earning rewards, using credit cards can be a smart option. When combining these strategies, you can effectively manage your finances and save money in the process.
4. Shop around for better deals
When it comes to saving money as a young adult, it’s easy to get into a routine of shopping at the same stores and buying the same brands. But sometimes, there are better deals out there that you might not be aware of. That’s why it’s important to shop around and compare prices.
Look for sales and discounts, and don’t be afraid to try out new stores or brands. With a little bit of effort, you could save a significant amount of money on your everyday purchases. You can also buy items that are on clearance at a huge discount to save even more. By combining these strategies, you’ll be well on your way to building a healthier financial future.
When making major purchases, also negotiate for better deals. For example, if you are buying a car or a home, it is important to get prequalified by multiple lenders and choose a loan or a mortgage with the lowest interest rate and more favorable terms. Also, stick to buying used cars ranter than buying a brand-new car. In addition, buy a home you can afford to save more money as a young adult. Again, try to bargain on every purchase you make.
If you are eating in a restaurant, for example, try to look for deals on the menu. Most restaurants have deals on some days or on a regular basis. Before ordering anything on the menu, ask if they have ongoing deals and select those to save a few bucks.
5. Try out a money-saving app
One of the most effective saving money tips for young adults is to use a money-saving app. These digital tools can help you find the best deals and discounts on the go. From coupon apps such as Ibotta, Shopkick, Honey, and Coupons.com to similar cashback apps, there’s a wide variety of options to choose from.
Some popular money-saving apps include Honey, Rakuten, and Ibotta. Honey is a free browser extension that automatically applies promo codes at checkout to help you save money on your online purchases. Rakuten, formerly known as Ebates, is a cashback app that gives you a percentage of your total purchase back in cash. And Ibotta is a rebate app that offers cashback on grocery, retail, and online purchases.
And if you really want to take your savings to the next level, consider using other money-saving apps such as Mint, Acorns, PG, Qapital, or Chime. In the world of saving money as a young adult, there are a lot of apps to choose from that can help you stay on track with your saving goals.
By using these apps in combination with shopping around for better deals, you can save even more money as a young adult. And if you’re a student, there are even more opportunities to save. Take advantage of student discounts, which are often available for everything from clothing and electronics to movie tickets and transportation. With these strategies in your toolkit, you can build a healthier financial future and enjoy the benefits of smart spending.
I will cover more details on student discounts below.
6. Take advantage of student discounts
If you’re looking for even more ways to save money as a young adult, consider taking advantage of student discounts. Many businesses offer discounts to students who can show a valid student ID, and these discounts can add up to significant savings over time. From clothing and electronics to movie tickets and transportation, there are many opportunities to save with student discounts.
A personal example: When I was a student in my graduate school program, my university offered free movie tickets every two weeks. Think about it, for the entire time I was in school, I watched free movies twice a month with free tickets from school.
There are many companies that offer discounts for just being a student. For example, if you are paying electric bills, you might get discounts for being a student. Did you know that some credit card companies give you free money for being a good student? For example, if you have a Discover student credit card, you can easily get paid a $20 statement credit for each school year if your GPA is 3.0 or higher, according to JUNO. Those getting student loans from Discover can also earn a one-time cash reward through the student loan rewards program from discover.
One of the smartest saving money tips for young adults is to take advantage of their shopping habits. If you like shopping online, try to use discounts from different online stores. Did you know that Amazon offers countless discounts for students for its programs and services? Yes, through the Amazon Prime Student program, you will get free shipping, get discounts on movies, and other services through amazon. You can even get free food delivery, save up to 10% on flights and hotels, get a 1 month of free 24/7 homework help, and much more. To learn more about these programs check the Amazon page.
7. Adopt the DIY mindset
Saving money as an adult doesn’t have to stop with discounts. Adopting the DIY mindset is also an important step in saving money at a young age. Yes, it is good to have someone doing most things for you, but, there are things you can do yourself to cut down expenses and boost your savings.
If you own a car, for example, don’t pay someone to change your headlights, change your oil, or clean wash and vacuum your car. You can do these things yourself and save money as a young adult. You might not like it at first. But, once you get started and program your mind the right way, you will be surprised by how much money you will save.
If you are having trouble with a simple technical support problem, don’t pay hundreds of dollars for a tech support company to do it for you. Use your imagination and watch videos on YouTube for answers. If you are struggling with something, don’t just pay to have it done. Learn how to do it yourself.
If you want to check your credit score for example, learn how to check it for free. Don’t just pay someone to tell you what your credit score is. Are you trying to rebuild your credit and get ahead financially? Learn how you can repair your credit without paying anyone a penny. All answers are there. All you have to do is to have the willingness to take care of yourself and your finances.
If you are filing your taxes, learn how to do it yourself instead of paying hundreds of dollars for someone to do it for you. There are many websites such as TurboTax, and TaxSlayer that can file your taxes for free on simple returns or for a small fee.
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8. Join a gym instead of paying for individual classes
In addition to taking advantage of student discounts and doing your own laundry, there’s another clever way to save money as a young adult – joining a gym. Instead of paying for individual fitness classes or memberships to multiple gyms, you can enjoy a variety of workouts for one flat rate at a gym. This not only saves you money but also gives you access to a range of equipment, classes, and resources to support your fitness goals.
Individual classes cost way more money since you get specialized training from qualified fitness trainers. In addition, they charge per class or monthly membership which is way more than what you pay for a regular gym membership.
However, it’s important to shop around and compare prices before committing to a gym membership. Look for promotions, discounts, and free trials to help you make an informed decision. Most gyms also give discounts for married couples. Instead of paying double what it would cost you individually, you might pay 50% by joining the same gym. Small savings like these ones are effective for young adults as they add up over time.
Additionally, make sure the gym you choose is conveniently located and offers the services you need. By making strategic choices about your fitness routine, you can save money and prioritize your health.
If you want to take your saving journey to the next level, cancel all your memberships and buy a few pieces of equipment for yourself. One used bike, a few dumbells, used treadmills, and used lifting equipment will seal the deal. The front cost might be a lot but the long-term benefits to your finances will be enormous.
9. Limit your subscriptions
Another aspect to consider when saving money as a young adult is limiting your subscriptions. It’s easy to get carried away with signing up for various streaming services, magazines, and other monthly expenses, but these costs can quickly add up. Temptation is one of the biggest reasons young adults find it difficult to save. The desire to own everything flashy or hot things. You want to pay for HBO because there is a TV show you want to watch there. You don’t have to buy into these temptations and desires. Your savings goals as a young adult matter the most, and therefore, focusing on these goals should come first.
Take some time to evaluate which subscriptions are truly essential and which ones you can do without. You may also want to explore options for sharing subscriptions with friends or family to help cut back on costs. By minimizing unnecessary subscriptions, you can allocate those funds toward your savings or other financial goals. This is just one way to be mindful of your spending and make strategic choices about where your money goes.
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10. Save your change
By simply saving your change, you can accumulate a surprising amount of money over time. While it may seem like a small amount, those coins can easily add up to a few dollars each week. You can even take it a step further by setting aside a specific jar or container for your change and making it a goal to fill it up before depositing it into your savings account.
Some banks even offer programs that allow you to automatically transfer your spare change from your checking account to your savings account. This can be a convenient and effortless way to save without even thinking about it.
By incorporating this habit into your routine, you can gradually build up your savings and reach your financial goals faster. It’s all about being mindful of your spending and finding small ways to save money as an adult.
11. Pay off your debts fast
One of the most effective saving money tips for young adults that get ignored is to pay off debt fast. Unless you are investing, you should not carry your debts for 30 years. For every loan you have you pay interest charges and unnecessary fees and over time these charges add up to a huge sum. Did you know that if you purchase a home for $300,000, the house will cost you close to $500,000 by the time it is paid off 30 years later? Why was the house $300,000 and yet, you ended up paying close to $500,000?
The answer lies in interest charges and fees. That 5% that gets applied to your mortgage balance makes your home expensive. What if you can pay off your home faster? Instead of costing you $500,000, it will end up costing you $400,000 or less. Not only that paying off your home faster will save you money, but you will also become debt free much earlier which will enable you to build your retirement accounts, invest your savings, and build wealth.
One of the most essential tips to save money as a young adult is to avoid debt cycles. Just like the name sounds, a debt cycle means that you are trapped in never-ending debt. That means you keep borrowing endlessly. For example, most people get car loans and spend 5 to 6 years paying them off. What do they do after paying those cars off? They get more car loans for more cars. Ten years later, the process starts all over again. You cannot get ahead financially when you are trapped in never-ending debt payments with interest eating your money.
The smartest saving money tip for young adults is probably paying off their debts and avoiding questionable loans. Paying off your debts faster prevents you from giving away your hard-earned money to the bank and keeps your finances in good shape and on track.
Related: 6 effective ways to pay off revolving debt fast
The bottom line
Saving money as a young adult is not impossible. By implementing these 11 clever money-saving tips for young adults, you can prioritize your financial well-being and still maintain a social life. Again, these money-saving tips for young adults are based on understanding your finances, tracking and managing how your income is spent, and making financially sound decisions. These small changes in your lifestyle will have a big impact on your financial security in the future.
