Need to save money? Control your expenses? Keep track of your financial resources? How about budgeting?
Budgeting is simple and effective. We often think budgeting requires a lot of time and effort. However, it isn’t like that. In a short amount of time you will learn to budget.
It is a simple process of creating a plan to spend your money. This plan helps you to always have enough money for what you need. It helps you make your way out of debt or never fall into one. You stay self-aware of your expenses. It helps you organise savings and helps you reach your goal!
Besides these reasons, here are few reasons you might budget as a teen:
Remember that independence and freedom only comes once you are financially stable.
Ready for budgeting? All geared up? Pull up your socks then! We are looking into tips and tricks!!
When starting budgeting, it is important to find a good bank. Conduct excellent research and look into the benefits they offer and policies. You can approach an adult to find a good bank. Do not use a bank just because one of your family members uses it.
Set your financial goals. You may not have long-term plans like ‘having a small house with a huge garden by a river in the outskirts of the city’, right now. Maybe you have plans like buying the latest phone? An album? Some books? Whatever it is, set financial goals so you can have a rational idea on what you are really opting for. Think about how much time you want to invest in achieving it.
Have a simple idea on your total income and expenses. With expenses you can create a chart; one column comprising things you will buy and another comprising their prices. Find out the total and subtract it with your income. This chart includes your estimated expense! Don’t forget to include hospital bills and medicines! This gives you a general idea on your income and how you want to balance your income with your expenses. Maybe you need more income!
Have another chart! This time the chart will show your exact expenses and savings. Teen Budget Worksheet: Make a chart like this or download it. Fill the chart at the end of the month! You will be in track of your finance and know where you will need to improve!
Managing your savings is important. From your savings separate a few amounts of external expenses for something you want. The rest should go to your bank account! Use it only when you NEED it!
Budgeting has been very beneficial for me! I have control over my expenses and it’s given me a rational idea of my expenses. I have found financial contentment! I have been able to save for my future education. Budgeting has helped me purchase what I want and act on emergencies during the absence of my parents.
Budgeting is the most important financial habit I have adopted in the past few years. However, I have endured the ‘fear of missing out’. It is important to avoid the fear of missing out! Your fun shouldn’t mess up your financial security. Absolutely use your student id! I try not to mix my savings and emergency funds. I try to organize them separately. So that in times of emergency I do not use my savings.
Beginning of budgeting was difficult for me. I didn’t know where to begin and what was the right next step. It took time to settle into this habit. It is important to give yourself a lot of grace. I used to compare myself with others. Everyone has different situations.
Starting off with the most important categories has helped me! I do not need to compromise for my true necessities. Comparing prices online can help too. Do not compromise in quality! Different online tools can be used as well. Unneeded materials can be sold for extra income.
Even though budgeting is personal, having someone look after your budgeting helps. My mom looks after my budgeting and warns me when I am spending too much. It is important to be accountable. You can have a reminder set or have someone help you!
Every month is different! For some months you will need a budget for stationeries while for some you need a budget for gifts, vacation etc! Adjust your budget for each month!
Budgeting helps a lot! From making you independent to managing your finances! It is your first step to independent living! You don’t have to be perfect at one go! You are not making a long-term plan that includes settling down, kids, their education, their marriage and your retirement. Relax! It comes with time!
Small expenses can add up to huge expenses!
You will get it!
(for young moms)
(example budget plan for young parents)
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