Being a teenager can be challenging, especially when it comes to personal finances. Many teenagers still rely on their parents and are financed by them.
However, it’s significant to make your children learn about budgeting and saving while they are still young so that they will appreciate the sense of financial responsibility in their adult life when money becomes a much more serious concern.
If you are a teenager having a part-time job, it will also be beneficial for you to learn some budgeting tips and tricks that will help you make the money last between jobs and save for something you want to purchase. Here are the steps you should make.
Being conscious is the feature connected with being an adult. Learning how to be conscious as a teen can help you learn what you spend money on every month. Budgeting worksheet for teens is really useful. You can write down everything you purchase in one month there.
As a teenager, there are so many little things that can simply sneak up on you. For instance, you can easily forget your vending machine purchases such as twenty dollars worth of snacks each month.
But if you learn how to budget properly you would buy those snacks from the grocery store or supermarket at a lower price and stock them in your locker or kitchen.
Down with the Unnecessary Things
Budgeting for teens is aimed at teaching you some key techniques and methods that you will be able to use in your daily life in order to manage your finances and save wisely.
So, when you are making a shopping list of everything that seems important to buy, make sure you cross out all the unnecessary stuff from it. You should include only those items you actually need right now, such as transport money or gas money to get to school.
The Laws of Subtraction
Also, every teenager needs to learn the basic rules of financial subtraction. You need to subtract all the necessary expenses from your monthly income. The budget is everything that is left after subtraction.
You may use this money to divide it into several categories such as “fun” things or entertainment. No matter how much pocket money is left for you, make sure you spend it wisely and don’t waste more than you’ve planned before.
Out of Sight, Out of Mind
One of the most effective rules of budgeting for teens is to keep your debit or credit card, not in your wallet but somewhere safe in your car when you go shopping. If you don’t have a car, you may even leave your cards at home and take only cash with you.
Make a shopping list in advance and take the average amount of money you will need to spend. Avoid places where you will be tempted to spend a lot of money and later regret it.
Don’t go “window-shopping” to the malls because most likely you will end up buying something you don’t really need.
It’s wise to keep some cash with you for any emergencies or unforeseen situations. Even if nothing bad has happened, and you still have some extra money on you at the end of the month, you will be able to go out with friends and encourage yourself with something.
As a teenager, your aim is not to blow all money on one night but to make it last for as long as possible. Try out different budgeting apps for teens to help you learn faster.
Another great way to live on a budget is to shop wisely. Most of the shops offer discounts and have sales at the end of each season.
So, if you found an item of clothing you would love to purchase, just wait a few weeks until the price goes down. Then you will be able to buy the same item but much cheaper.
Learning how to be frugal is essential. If you prefer to shop online, you may also search for special deals like monthly discounts or free shipping.
P.S.: read our review of the best personal finance apps.