Written by: M Katie Helle, CPA
Building a savings habit can be one of the most rewarding things you do for your future. Saving money gives you the freedom to handle emergencies, pursue big goals, and create financial security. Starting early with small, consistent actions can help build a strong savings habit that will benefit you for years.
Pay Yourself First
One of the easiest ways to save is by “paying yourself first.” This means setting aside money for savings before spending on anything else. If you’re getting a paycheck or allowance, try to save a portion right away—10% is a great starting point. By prioritizing savings, you’ll build up money for emergencies and future goals without even thinking about it.
Set Specific Savings Goals
Saving is easier when you have a goal in mind. Whether it’s buying a new phone, funding a college education, or building an emergency fund, having a clear goal gives you motivation. Goals can be short-term (e.g., saving for a concert ticket) or long-term (e.g., saving for college). Once you set a goal, break it down into smaller steps. For example, if you need $500 in six months, save about $20 each week. This approach makes saving manageable and rewarding.
Automate Your Savings
Automation is a powerful tool for building savings without much effort. Many banks and apps allow you to automatically transfer a set amount into savings whenever you get paid. This “set-it-and-forget-it” method ensures you consistently save without the temptation to spend the money first. Automatic transfers are a great way to make saving money a regular part of your routine.
Use a Savings App
Budgeting and savings apps, like Mint or Qapital, can help you stay on top of your goals. These apps allow you to set specific savings goals, track progress, and sometimes even round up purchases to add to savings. For example, if you buy something for $2.75, the app will round it up to $3.00 and put the extra 25 cents into savings. Apps can make saving simple and even fun by showing your progress toward goals.
Celebrate Small Wins
Saving money isn’t always easy, so be sure to celebrate your progress! Small rewards, like treating yourself to something within budget after reaching a milestone, can keep you motivated. Saving a little bit each week may not seem like much, but those small amounts add up over time. Acknowledging these achievements can help keep you on track.
Building a savings habit as a young adult provides a foundation for financial freedom and confidence. By paying yourself first, setting clear goals, automating deposits, using savings apps, and celebrating small wins, you’re building habits that make saving simple and rewarding. Starting with small steps today leads to big financial gains in the future.
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Katie Helle is a Certified Public Accountant (CPA) and the founder of Scaled Accounting Solutions, a firm dedicated to helping small businesses and individuals manage their finances with confidence. With a background in both teaching and tech-savvy accounting, Katie is passionate about making financial concepts clear and approachable for everyone—especially young adults just beginning their financial journeys. Her goal is to share practical tips on budgeting, saving, and planning for the future, empowering teens and young adults to build a solid financial foundation.