Young people often don’t have a very large income, and so saving money can be a struggle. Reportedly, 40% of 18-34 year olds have had to borrow more money since the pandemic hit in March 2020. Wave Community Bank are here to provide some ethical ways to help you save money.
It may seem simple, but you cannot underestimate the importance of budgeting. Our Wave Money Guide has a helpful budgeting tool. This way, you can work out your expenses, your disposable income, and how much you can afford to save each month. Some people use the 50/30/20 approach: 50% of your income for essentials like rent, bills and groceries, 30% for things like clothes and meals out, and 20% to put into your savings. This is a good place to start!
It’s a good idea to put money aside into your savings at the beginning of the month. That way, you’re not tempted to spend it. It doesn’t have to be a lot, just whatever you can afford – those pennies will quickly add up!
Pay off your high interest debt first, that way you won’t accrue even more costs over time. If you have a payday loan or a short term loan, prioritise paying these off.
Cancel any subscriptions you’re not using. When was the last time you used your gym membership, or watched something on Amazon Prime? These small costs eat away at your budget in the background!
If you open a Wave Save account with us, you can set savings goals. For each goal you set up, you will be asked to set a target amount you are aiming to save and you can then use the slider to set a target date and the app will calculate how much you need to save each month to reach your goal by the date you have chosen. You can then factor this into your monthly budget!
This can be helpful if you’re saving towards a few different things, such as a new car or a house deposit. Having a goal in mind will help you be more mindful with your spending. We know that saving money seems boring, but think of the reward at the end of it!
If you’re looking to start saving but you’re not sure how, check out our young people money guide, and keep up to date with our blog, where we regularly post money saving tips for young people to help them get prepared for the future.
We also have a Young Savers account for young people under 16.
