Saving Tips for Young People

Author: calchub.tech team
Reviewed for accuracy and clarity by: calchub.tech research team
Last updated: 2026

Saving money is not something most people master early in life. In our younger years, many of us struggle to find an effective saving strategy or even decide how much money we should start putting aside. We want to enjoy life now, but we also know we need to prepare for the future.

As a team that works closely with calculators, budgeting tools, and financial planning content, we’ve seen the same challenges repeat across students, early earners, and young adults. This guide is built from those real patterns—not theory—to help you develop practical saving habits that actually work.

This article is for educational purposes only and does not replace personalized financial advice.

Starting Early Matters

Saving often feels difficult at first because it forces trade-offs. Many young people want to save and buy items at the same time. Every decision becomes a balance between setting aside money and short-term enjoyment, especially on weekends.

At the same time, there are distant goals to think about, such as:

• Driving lessons

• Cars

• Future house deposits

These early decisions highlight the importance of saving as a life skill, not just a financial task. When saving is taught with proper financial awareness as part of education, it becomes a foundation for better decision-making later in life. These are not abstract ideas—they are useful thoughts and proven tips for saving that we’ve seen work consistently.

Understanding What Saving Really Is

What saving means in practice

Saving simply means setting aside a part of your income over a period of time to accumulate cash. That money allows you to buy things you want, such as:

• The latest iPhone

• A gaming computer

• A cool outfit

Saving is also beneficial because it helps you build a rainy day fund for emergency expenses, which reduces stress when life becomes unpredictable.

Why saving feels hard

Saving is an important skill, but it is also a difficult skill. It requires:

• Patience

• Discipline

• Sacrifice

Over time, saving builds financial discipline, helping you afford the things that make you happy without constant pressure. In an ideal world, everyone would have enough disposable income, but in the real world, income constraints and unattainable items are common. This is why smart strategies matter—they make desires attainable through realistic savings strategies.

Reference: OECD Financial Literacy Framework

Ways to Increase What You Earn

Increasing your income potential

Increasing earnings is often the most direct way for young adults to improve their savings capacity. Many people overlook income-boosting strategies that are already within reach.

Options without a full-time job

You can increase disposable income by:

• Searching for job opportunities in local businesses or your neighbourhood

• Checking online spaces and social media platforms for work

• Asking for cash gifts during birthdays or holidays (with tact and clear saving goals)

• Boosting allowance through extra chores

• Doing odd jobs and errands such as dog walking, babysitting, or gardening

• Selling unused items owned by you or family members

Options if you are already working

If you already have a job, consider:

• Applying for better-paying positions within your workplace

• Asking for a pay raise supported by an exemplary record and strong work responsibilities

• Taking a second job, such as Uber, if your schedule allows flexibility

• Monetizing skills through online platforms like tutoring, coding, or custom artwork

• Learning in-demand skills that provide long-term financial benefit and increase your value to employers

Reference: UK National Careers Service

Saving More From What You Already Have

Why budgeting matters

Saving larger portions of income increases savings capacity, but it requires strong budgeting discipline. Budgeting helps you track expenditure and build a clear spending plan.

In today’s digital world, this is easier than ever using:

• Free budgeting tools

• Affordable budgeting apps

• Simple spreadsheets

Strong financial skills help young people grow into functioning adults who can live within their means.

Cutting unnecessary spending

To reduce unnecessary expenditure:

• Review subscriptions and payment accounts

• Limit credit card expenditure to avoid interest charges

• Prefer cash payments where possible

• Avoid impulse buying by planning purchases

• Buy essential items in bulk to access discounts

• Shop around across online retailers

• Look for promotional offers

• Use student discount programs

• Join loyalty programs and redeem points

Extreme approaches like Financial Independence, Retire Early can harm lifestyle and happiness. A healthy saving process should support life—not restrict it.

Reference: MoneyHelper UK

Giving Yourself More Time to Save

Time as a saving tool

Sometimes the most effective strategy is extending the saving time period. This depends on:

• Cost of the goal

• Disposable income

• Monthly savings ability

Example saving plan

This shows why patience matters. For big-ticket items on limited income, saving longer may even allow you to buy a newer or better product—such as a PS6—if prices change. This is practical budget planning.

Reference: Consumer Financial Protection Bureau

Choosing a Cheaper Option Wisely

Adjusting expectations without giving up

Budgeting, saving, and financial management always depend on present circumstances, income levels, and expenditure levels. Sometimes, realistic expectations mean choosing a lower-priced alternative.

Smart alternatives often include:

• Older models

• Cheaper models with the same functionality

• Second-hand items in excellent condition

This is especially true for smartphones, laptops, and consumer electronics, where brand recognition often inflates prices.

Reference: Which? Consumer Guides

Making Your Money Work for You

Growing savings over time

Saving usually means accumulating funds in a designated savings pile. For expensive goals or longer timelines, growth becomes important.

Short-term goals (under 3 years)

For goals like holiday savings:

• Use a savings account with competitive interest rates

• Compare options using platforms like UK Savings Champion

• Benefit from compound interest instead of earning 0% interest in current accounts

Long-term goals (over 3 years)

For goals such as weddings or house deposits:

• Investing may offer higher returns

• Investments carry risk and require expert understanding

• UK savers can use an ISA or junior ISA to reduce income tax

Robo-investing platforms like Wealthify (by Aviva) and YouInvest (by AJ Bell) use algorithms for stock selection, but expert opinion is always recommended.

Reference: FCA UK Guidance

Building Financial Confidence Over Time

Saving is not about perfection—it is about progress. Every young person who learns to save moves closer to financial independence. Saving is a lifelong journey that prepares you for emergency expenses, improves money habits, and strengthens long-term financial confidence.

This guide is designed to support learning and discussion. If you have saving tips or ways of making money that worked for you, sharing them can help others take their next step with confidence.