Budgeting Basics for Teens: A Simple Guide to Financial Freedom

Feeling overwhelmed by your finances? Budgeting doesn't have to be complicated. It's simply about understanding where your money is going and making informed choices about how to spend it.

What is Budgeting and Why is it Important for Teens?

Budgeting helps you take control of your finances, achieve your financial goals (like saving for a new phone or a future car), and avoid unnecessary debt.

Step-by-Step Guide to Creating a Budget:

1. Track Your Income: List all sources of income (allowance, part-time job, gifts).

2. Track Your Expenses: Use a notebook, spreadsheet, or budgeting app to track where your money is going (categorise expenses: food, entertainment, transportation).

3. Create a Budget Plan: Allocate your income to different expense categories based on your priorities.

4. Stick to Your Budget: Monitor your spending and make adjustments as needed.

Tips for Successful Budgeting:

• Set Realistic Goals: Start small and focus on achievable goals.

• Prioritise Your Needs: Differentiate between needs (essential expenses) and wants (non-essential expenses).

• Automate Savings: Set up automatic transfers to a savings account.

• Use Budgeting Apps: Explore budgeting apps to help you track your spending and manage your finances.

Example Budget for a Teen: 

Category	Amount (€)
Allowance	50
Part-Time Job	100
Total Income	150
Expenses
Food	30
Entertainment	40
Transportation	20
Savings	60
Total Expenses	150

Simple as such! Want to learn more about budgeting and other essential financial skills?

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