Money In, Money Out: Mastering the Teen Budget

1 May

Budgeting might sound like something only adults worry about—but truth is, the earlier you learn how to manage your money, the more confident and in control you’ll feel. Whether you’re earning pocket money, have a part-time job, or getting an allowance, knowing how to handle your cash is a skill that sets you up for success now and in the future.

This blog is all about helping you build a simple, realistic budget that works for your life as a teen. It’s not about being strict or cutting all the fun out—it’s about making smart choices that help you do more with what you have.

Why Budgeting Matters

Budgeting isn't just about saving money—it's about understanding it. When you track how much you have, how much you spend, and what you’re spending it on, you’re less likely to run out or make impulse decisions you might regret. Plus, learning to budget now helps build strong financial habits for adulthood, when things like bills, rent, and groceries become part of everyday life.

Step 1. Know Your Money In

Start by figuring out how much money you get and where it comes from. This could include:

Allowance
Birthday or holiday gifts
A part-time job
Freelance work (like babysitting, lawn care, tutoring)
School stipends or scholarships (if applicable)

Write down how much money you usually get in a month. That’s your income.

Step 2. Know Your Money Out

Next, figure out where your money goes. This might include:

Food/snacks
Clothes
Subscriptions (like Netflix or Spotify)
Going out with friends
Transportation (bus fare, gas)
School supplies
Saving goals

Add up your average spending. This is your expenses.

Step 3. Create A Simple Budget Plan

Here’s a quick and easy formula to get you started:

50% Needs, 30% Wants, 20% Savings

Needs – things you have to pay for (school lunch, phone bill, transportation)
Wants – fun stuff you like (games, clothes, going out)
Savings – put aside money for the future, a big goal, or emergencies

If your income is £100 a month:

£50 goes to needs
£30 to wants
£20 to savings

You can adjust this based on what works best for your situation—but the key is to give every dollar a purpose.

Step 4. Track Your Spending

Once you’ve made your budget, use a notebook, spreadsheet, or budgeting app to track how much you’re actually spending. This helps you spot patterns, catch overspending early, and stay on top of your goals. You can review your budget every couple of weeks and make changes if you need to.

Step 5. Set Goals And Save For Them

Having a goal makes saving more motivating. Whether it’s a new phone, concert tickets, or even just building an emergency stash, write it down and set a timeline. Divide the total cost by the number of weeks or months until you want to buy it. That’s how much you need to save regularly.

Final Thought

Budgeting isn’t about restriction—it’s about freedom. It gives you the power to make informed choices, avoid unnecessary stress, and plan for the things you truly care about. The earlier you learn to manage your money, the more confident you’ll feel about your future.

So don’t wait—start today. After all, mastering your money means mastering your independence.