On this page, you will discover how to easily save money as a Teenager in Nigeria.
Hello there, are you interested in knowing some cool ways on how to save money in Nigeria as a young teenager? Oh! You are here to know the best money saving practices to get the best value from your money as a student.
Well, it doesn’t really matter anyways. You are sure to get the best from this page if what you are interested in knowing relates to saving money in Nigeria as a working/unemployed youth.
Some might think it is impossible to save money in Nigeria as a youth when you are not working. Well, I can only speak for myself. However, you might want to consider a rethink if you fall into same category of persons. Everything is possible provided it is not magic and it sure will work only if you believe.
The need for saving money as a teenager/student in Nigeria are just so many that it cannot be contained on a single page. Therefore, I will list on this page a detailed outline on some of them.
Why Saving Money is Important for Teenagers/Students in Nigeria
- It help you set up a financial plan
- Saving help you out of future financial trouble or emergencies
- It boost self-security as it has a lot to do with self-reliance
- Saving makes you happier; feeling you have money stored somewhere which may result for you living long.
- Saving lets you eventually acquire important things you wish you had at the moment to no enough money to buy them.
How to Save Money as a Teenager/Student in Nigeria 2022 (step by step guide)
You’ll find a complete step by step guide below on how to save finance/money in Nigeria as a student/teenager with or without employment (provided you have a little source of generating income).
Get Rid of all your Debts
The first step to take if you want to the get best out of your money saving experience is to make sure you are not in any form/kind of debts. It’s okay because debts are a way of taking charge when there is a need of finance which is unavailable at the moment. Or, do you think you can save when you have multiple loans from different persons/financial institute? No you can’t.
This is why clearing all your past balance due is the first step to take most especially if you plan to start saving money for future purposes. This also brings about why loans are not the best option to consider in Nigeria (link here).
Deceive from Taking Loans
The second point to consider on money saving as a teenager/youth is taking future loans off your mind. Don’t get me wrong. I never said taking loans is a bad or maybe the worse idea anyone can come up with. The thing is; as you plan to begin saving, taking loans will always give a bad side to your saving rate as you will have to keep repaying – instead of saving.
It is important to learn how to compress yourself in desires of things you need/want. Funny enough, some people take loans for shopping or even; having fun with friends. Do you really think it’s a brilliant idea? Any sane mind will say “no”. This is why you should avoid loans.
However, even though loans are good for certain reasons, there are some common things you need to ask yourself and make sure all answers are right before you proceed with the option. They include;
- Is what I am using the loan for really important that I can’t do without?
- Am I using it for investment or business? If yes, then what are the risks involved and period of time needed before I get my returns?
- How certain am I that I will get back the money to repay the loan I just collected?
Having a deep thought in above 3 options may help you make the best decision. To me, I see a sleek reason(s) why I will request for a loan if am not using it for business or educational purpose.
Create a Saving Target
Now that you are free from any financial burden, you can begin with your money saving without issues. The first step to take is creating a saving target.
Let me make use of a birthday celebration party to illustrate this more.
For instance; this is January 2022 and by birthday is June 2022. And I need money for my birthday celebration. You only need to ask yourself how much money you need and how many months before the deadline date.
Let’s say you need N50k cap. And remember, from January to June is only 5 months. Now, all you need to do is dividing 50k by 5 months – you sure will get 10k. This simply means that you need to save 10 monthly from now to sum up 50k in June.
It might not just be a birthday celebration. It could be a capital needed to venture into a business idea or others. Creating a target for yourself is one of the most important thing to consider before planning to start saving money as a teenager. This is because without a target, you might get lazy to continue saving in the long run which may affect your saving wallet.
Sign up on some Nigerian Money Saving Platforms/Apps
Are you aware there are apps in Nigeria that can help you setting up a saving target? Sure you must have come across of even heard about one (since most of them are popular) buy you never noticed. Well, this is why information is very important and lucky for you. You are just on the right page.
Apps like Cowrywise, Branch and **** can help you in setting a saving target. All you need to do is create a saving target on the apps by adding saving goal, amount needed, deadline date and mode of repayment. The apps will automatically withdraw money into your bank account and save it for you in such a way; you won’t be able to withdraw until the due date. I consider using apps in saving money as it is the best option most especially if you are a type that finds it hard seeing money in his account and not touching it. Hey, don’t be scared okay. These apps are a recognized financial institution licensed by the Central Bank of Nigeria (CBN) to carry out financial services to Nigerians (this simply means your money is 100% secured).
Create a Spending Limit
This is another important fact that can help you get – even better results from your money saving plan. Creating a spending limit will optimize your spending overtime thereby, making you purchase only things you need instead of buying the whole market.
This can be done simply by analyzing your monthly income and subtracting your monthly saving from it. Since, you know how much money will be left for you after removing your monthly saving, it will sure help you know how to manage the little remaining to get even more value from your money.
Only Pay for what you can afford & Always go for quality
This method is very tempting most especially if there are so many things to buy or maybe, you find an alike product with similar service yet with different price tag. It is advisable that you identify your needs from your wants of taste. This will help you in the long time while saving money for your future plans as a youth.
Another thing is going for quality other than considering the price.
Don’t get me wrong. I don’t mean you should always buy things with huge price tag neither did I made mention, things with higher price have more quality.
What I am trying to say is simple. Pick the right thing you need and buy a good one that will last longer – instead of buying low quality that will only last for a short period of time. You may end up, going back to acquire another or maybe the good one since the one you purchased earlier is bad. If you make this mistake (choosing price of quality), you can end up losing more than amount you would have lose earlier, if you had bought the good one.