You just got paid—maybe from your part-time job, allowance, or birthday cash—and two days later… it’s gone. Poof. No idea where it went.

Sound familiar?

If you’re like most teens, managing money can feel like a game you were never taught the rules to. But here’s the secret: you don’t need to be a finance genius to make your money work for you. Learning how to budget now sets you up for financial wins later—without giving up everything fun.

Let’s break down how to master your teen budget step-by-step, so you can spend smart, save big, and still treat yourself.

What Is A Budget

A budget is your money plan. It’s how you track your “money in” (income) and “money out” (spending)—so you’re not left wondering where your last £20 went.

Why it matters:

Helps you avoid going broke mid-week
Lets you save for cool stuff like gadgets, concerts, or even college
Builds money habits adults wish they had as teens

Step 1: Know Your Money In

Start by writing down all the money you get regularly:

Allowance
Part-time job
Babysitting, tutoring, dog-walking gigs
Birthday or holiday cash

Add it all up. That’s your monthly income.

Step 2: Track Your Money Out

Next, write down where your money usually goes:

Food and snacks
Subscriptions (Netflix, Spotify, etc.)
Shopping
Transport (bus fare, fuel, etc.)
School supplies or activities

Look back at your bank or mobile wallet transactions—or use a money app like RoosterMoney or GoHenry to help track spending automatically.

Step 3: Create Your Budget

Here’s a simple breakdown teens can use (based on the 50/30/20 rule):

50% Needs: transport, school stuff, basic food
30% Wants: clothes, gaming, fast food
20% Savings: for future goals or emergencies

Example: If you make £100 a month, aim to save £20, spend £30 on fun, and keep £50 for essentials.

Step 4: Use Tools to Stay On Track

Money apps can seriously help you budget like a pro:

GoHenry: Helps track spending & saving (plus comes with a teen debit card)
Revolut <18: Lets you split money into spending, saving, and giving pots

Even a simple notes app or spreadsheet can work. The goal is to know what’s coming in and going out.

Step 5: Stay Flexible (But Smart)

Sometimes things change. You might earn more one month or have surprise costs like birthday gifts or class trips.

That’s okay! Budgeting isn’t about being perfect. It’s about being aware and intentional with your money.

Pro tip: Have a “just in case” fund (even £5–£10/month) for unexpected stuff.

Step 6: Review & Adjust Monthly

At the end of each month:

Look at your actual spending
Compare it to your budget
Make changes for next month

This isn’t a one-time thing—it’s a habit. The more you review, the easier budgeting becomes.

“Budgeting gives teens freedom—not restriction. When you tell your money where to go, you take control of your future.”

— Beth Kobliner, Author of Make Your Kid a Money Genius (Even If You’re Not)

Final Thought

Budgeting might not sound glamorous, but it’s a total game-changer.

When you learn to manage your money in and money out, you unlock freedom: freedom to buy the stuff you love, save for the future, and avoid the stress of being broke.

Start small. Keep it real. And remember—every budgeting boss started right where you are.