So you’ve got some money — maybe from an allowance, a part-time job, or your side hustle. Now what? Enter the magical word: budgeting. Think of budgeting as giving your money a job, so it works for you, not against you. Let’s dive into the basics and break it down teen-girl style.
Needs vs. Wants: What’s the Difference?
One of the most important budgeting lessons is learning to tell the difference between needs and wants.
- Needs are the things you must have to live and function — like food, school supplies, or transportation.
- Wants are the extras — like new clothes (when your closet is already full), that extra-large boba tea, or concert tickets.
💡 Quick Check: Ask yourself — “Will my life fall apart if I don’t buy this?” If the answer is no, it’s probably a want.
Fixed vs. Variable Expenses
When you start tracking your spending, it helps to sort your expenses into two categories: fixed and variable.
- Fixed expenses stay the same every time — like your monthly phone bill or a regular subscription.
- Variable expenses change depending on the week or month — like how much you spend on snacks, clothes, or outings with friends.
Understanding this helps you see what you have to spend and where you can cut back if needed.
How to Make a Simple Budget
Here’s a super easy way to start:
- Know your income – Add up all the money you get regularly.
- List your expenses – Write down everything you spend money on each month.
- Divide into categories – Needs, wants, fixed, and variable.
- Set limits – Decide how much to spend in each category.
- Track it – Use an app, spreadsheet, or even a notebook.
💡 Tip: Try the 70/20/10 rule: Use 70% of your income for spending, save 20%, and donate or invest the remaining 10%.
Why Budgeting = Freedom
Budgeting isn’t about saying “no” to fun — it’s about saying “yes” to what matters most. When you’re in control of your money, you can make confident choices, avoid debt, and reach your goals faster.
The earlier you learn to budget, the better off you’ll be. So go ahead — grab your favorite journal or budgeting app and start giving your money a mission. Future you will thank you!
Her Financial Future 