High school is the perfect time to begin learning about budgeting money. This is especially true if you intend to go on to college. Many teenagers have a regular allowance or part-time job to count as income. Budgeting is crucial, as many find out the hard way, whether the income is high or low. Here is a simple method that any teenager can use to help him develop positive money management habits to carry with him into adulthood.
Starting with It
On a piece of paper or the computer, make three columns: income, expenses, and luxuries. Expenses are items that you must pay for, and luxuries are items that you want but do not need.
First, determine how much income you have on a weekly or monthly basis. This might be an allowance or a paycheck from a part-time job. If this varies, try to write down an average figure.
Next, determine your expenses. It might take a month or two of monitoring to figure out where all the money goes, which is fine. Begin to keep track of where you spend. Fill in the budget columns, highlighting what the expense or luxury is and the amount. Here are some common teenage expenses and luxuries:
- Lunch/snacks
- Clothes
- Cell phone
- Video games
- Other shopping
