![]() Once you decide on a budget, it’s important to stick to it. After creating your budget, you can direct your earnings into different jars – such as savings jars and jars for different expenses. ![]() HyperJar can help you to avoid spending money with their savings jars. ![]() One of the great budgeting resources for young people is the HyperJar app. So if your essential expenses account for 20% of your earnings, you might decide to save 50% and spend 30%, for example. However, the process of deciding the percentage of income you’ll save – versus spend – stays the same. Especially because most teens don’t have to pay for rent and utilities, your essential expenses should be significantly lower. One of the most popular is the 50-30-20 budgeting rule, in which 50% of your income goes towards essential expenses, 30% to discretionary spending and 20% to your savings.Īs a teen, this might look a little different. The first step to creating your budget is subtracting your regular expenses – like your gym membership – from your total income.Īfter these costs are accounted for, your remaining funds can be divided between saving and discretionary spending (a.k.a. Budgeting for teens develops financial skills that will benefit you through university and life as a young adult. Now that you’re aware of your monthly incomings and outgoings, you can start creating your budget. If there are things you regularly spend money on, you need to factor them into your budget.ĭo you have a gym membership? Do you buy birthday presents for friends and family? Do you use any subscription services, like Netflix or Spotify?Įach regular outgoing needs to be recorded so you know how much of your monthly income is disposable and free to direct to spending/saving categories in your budget. Whether you have a part-time job, earn an allowance for doing chores around the house, and/or even have a small business as a teen, you need to work out how much money you earn each month to create an effective budget. If you don’t know how much you make, you don’t know how much you can spend – or save. This means you can save for the bigger purchases that are more valuable to your life – like a laptop or a car – and avoid spending impulsively on less important things.īut how do you budget as a teen? 1. Budgeting for TeensĪt any age, budgeting helps people get closer to their financial goals.Īs a teen, budgeting allows you to make the most of the money you earn (or are given by family members). In this blog, we’ll look at the most important budgeting information for young people in our comprehensive guide to budgeting for teens and young adults. Though teens and young adults typically have less financial responsibility than older people, budgeting is a tool that can help young people to get ahead financially at an earlier age. ![]() It builds habits that’ll benefit you throughout your life.īudgeting information for young people can help teens and young adults prioritise important financial goals and teach them how to reach them effectively. If you’re a teen or young adult, it doesn’t just help you save for the things you want. ![]() Budgeting can help people at any age to accomplish their financial goals. ![]()
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