For many teenagers, summer represents freedom. School assignments are replaced by pool days, road trips, late nights with friends, and opportunities to work summer jobs. While summer offers a welcome break from academic responsibilities, it also brings new financial decisions. With more free time comes more opportunities to spend money, and many teens may not realize how quickly those expenses can accumulate.
According to Gregory Barnhart, a financial advisor with First Command, some of the most common summer expenses for teenagers are not major purchases but rather the small, everyday costs that often go unnoticed. Whether it is stopping for food after an activity, buying snacks at the pool, grabbing coffee with friends, or spending more money on gas due to increased driving, these purchases can gradually consume a significant portion of a teen’s budget. “The little expenses catch teens,” Barnhart explained.
Because each purchase seems relatively inexpensive on its own, many teenagers fail to recognize the cumulative effect. If a teen has $60 available to spend, a fast-food meal might cost around $12, a coffee another $5, and a small purchase while shopping with friends an additional $5. By the end of the day, $22 has been spent, more than one-third of the original amount.
While occasional spending is a normal part of enjoying summer, Barnhart encourages teenagers to think about the opportunity cost of their purchases. Every dollar spent is a dollar that cannot be saved or used for future goals. Understanding this concept can help teens become more intentional with their spending habits and make decisions that align with their priorities.
One of the best ways to develop this understanding is through a summer job. Beyond earning money, employment teaches valuable lessons about the relationship between work and spending. When teenagers begin earning their own paychecks, they often gain a new perspective on the value of money.
“In many cases, it takes so much more to earn the money than it does to spend it,” Barnhart said. For example, if a student earns $10 per hour, it would take six hours of work to earn $60 before taxes. Looking at purchases in terms of hours worked can make spending decisions feel more meaningful and may discourage unnecessary purchases.
When it comes to saving, Barnhart recommends that teenagers start with a simple goal: save 20 percent of all earnings. While the exact amount may vary depending on personal goals and circumstances, this rule provides a strong foundation for building financial discipline. A teenager who earns $300 per month and consistently saves 20 percent would accumulate $720 in savings after one year without accounting for any investment growth.
Social media presents another challenge for young people trying to manage their finances. Teens are constantly exposed to advertisements, influencers promoting products, and friends posting about vacations, concerts, and shopping trips. These images can create pressure to spend money in order to keep up with others.
Barnhart advises teenagers to focus on their own goals rather than comparing themselves to what they see online. He suggests assigning personal goals a value from one to ten based on their importance. Goals ranked closer to ten—such as saving for college, a vehicle, or future travel—can serve as a reminder when deciding whether a purchase is truly worthwhile.
The importance of saving extends beyond short-term goals. Barnhart emphasizes that when it comes to building wealth, time is one of the most valuable resources available. While income levels and investment returns may change throughout life, time cannot be replaced. Developing good saving habits early allows young people to maximize opportunities for future growth and financial security.
As summer continues, Barnhart encourages students to set simple and achievable financial goals. One of the easiest goals, he says, is to have more money in savings when the next school year begins than when summer started. While straightforward, this goal helps establish positive habits and creates a financial cushion for future opportunities and unexpected expenses.
Ultimately, Barnhart believes financial success begins with balancing enjoyment and responsibility. Summer should be a time for making memories, spending time with friends, and enjoying new experiences. However, it is also an opportunity to develop habits that will benefit students long after the season ends.
“Have fun being young,” Barnhart said, “but don’t forget you are growing into the adult you want to become.”
The choices teenagers make today, whether spending, saving, or planning for the future, can have a lasting impact. By becoming more mindful of where their money goes and setting aside even a small portion of their earnings, students can enjoy their summer while also investing in their future.
