How to Build Money Habits You Won’t Regret Later

Introduction

Think money doesn’t matter yet? Think again.

Whether you get pocket money, a weekend job, or birthday cash, how you use your money today will shape how confident, independent, and stress-free you are tomorrow.

Truth is, most adults wish they’d learned how to handle money earlier. They regret blowing cash on things they didn’t need, or getting into debt too young. The good news? You can avoid that.

Here’s how to build money habits now that your future self will seriously thank you for later.

“When teens develop smart money habits early, they build confidence and a sense of freedom that lasts a lifetime.”

— Farnoosh Torabi, Financial Author & Host of the “So Money” Podcast

1. Start Small, But Start Now

You don’t need to save hundreds to get started — even £1 a day adds up. It’s all about building the habit.

Example: If you save just £1 a day from age 15, that’s £365 in a year. Do it for 5 years? That’s over £1,800 — not even counting interest.
Want a visual goal? Use a jar, a spreadsheet, or apps like Monzo or Starling that let you create money pots.

Lesson: The earlier you start saving, the easier it gets — because you’re building the muscle, not just the amount.

2. Always Know Where Your Money Goes

Tracking your spending is one of the smartest things you can do. It shows you exactly where your money disappears — and how to take control.

Free tools to try:

• Emma – tracks bank spending

• Money Dashboard – great for setting budgets

• Or go old-school with a notes app or spreadsheet

Even just writing down what you spend for 7 days can be eye-opening.

Lesson: If you don’t track your money, you’ll always wonder where it went.

3. Set a ‘Fun Fund’ and a ‘Future Fund’

Splitting your money makes managing it easier (and less stressful). Here’s a simple method:

• 50% – Spend on things you want (clothes, food, fun)

• 30% – Save for short-term goals (concerts, tech, holidays)

• 20% – Long-term savings (uni, emergency fund, investing later)

This way, you can enjoy life and stay smart with your money.

Lesson: You don’t need to give up fun — just balance it with future goals.

4. Master the “Wait Before You Buy” Rule

Impulse buys are money killers. That new hoodie or gadget might seem like a must-have now… but will it still feel that way tomorrow?

Try this:

• Wishlist Method: Add it to a wishlist and wait 24 hours (or 7 days for big stuff).

• If you still want it and it fits your budget — go for it.

Lesson: Time gives you perspective — and protects your bank balance.

5. Learn the Power of Earning (Not Just Saving)

Saving is smart, but learning to earn is next-level. Whether it’s babysitting, selling stuff online, or helping neighbours with errands — every pound earned grows your skills, confidence, and freedom.

Plus: Money you earn feels more valuable. You’ll think harder before spending it.

Lesson: Earning money teaches you how to value it — and yourself.

6. Avoid Debt Like It’s Quick Sand

Once you turn 18, credit cards, overdrafts, and Buy Now Pay Later deals are everywhere. They look helpful, but debt can trap you fast.

• £100 turns into £150 with interest

• Missed payments hurt your credit score (which affects getting a flat or phone contract)

• Stress levels go through the roof

7. Talk About Money — Don’t Avoid It

Money isn’t a secret or something to be ashamed of. The more you talk about it, the more you’ll learn.

• Chat to parents or older siblings about their mistakes and what they wish they knew

• Ask questions at your bank

• Follow financial TikTokers or YouTubers who explain things clearly

8. Don’t Compare Your Wallet to Others

It’s easy to feel behind when you see your mates with the latest iPhone, designer clothes, or holidays abroad. But you never know where their money’s coming from — or going to.

Some people go into debt just to look like they have it all. Don’t fall for the highlight reel.

The Money Habit Recap

Here’s your cheat sheet:

• Start saving small and early

• Track your spending

• Split your cash into fun/future

• Wait before you buy

• Learn to earn

• Avoid debt

• Talk money

• Stop comparing

These habits might seem small now, but they build the foundation for a stress-free financial future.

Final Thought

You don’t need to be perfect — just consistent. Every smart choice you make now builds the life you want later. So start small, stay curious, and keep learning.

Your future self will thank you — and so will your bank account.

FAQ’s

• What’s the best age to start saving money?

  Now. Whether you're 13 or 19, the earlier you build the habit, the easier it becomes. Even tiny amounts count.

• How do I stop spending all my money straight away?

  Try the split method (fun/future fund), and give yourself a 24-hour pause on non-essential buys. Also, track your spending — you’ll spot where money leaks.

• Should I open a bank account as a teen?

  Yes! A teen or student account helps you learn banking basics, access savings pots, and start building financial confidence.

• Is it worth budgeting if I don’t have much income?

  Absolutely. Budgeting isn’t just for big earners — it’s about knowing where your money goes, no matter how small.

• What’s the biggest mistake teens make with money?

  Spending to impress others, and ignoring debt risks. Your money is for your goals — not for showing off.