📊 The 50/30/20 Rule
This popular budgeting method divides your money into three categories: 50% for needs (food, transportation, essential expenses), 30% for wants (entertainment, eating out, fun stuff), and 20% for savings and future goals. As a teen, you might adjust these percentages based on your situation!
- •Needs (50%): Essential expenses you can't avoid
- •Wants (30%): Fun things that make life enjoyable
- •Savings (20%): Building your future financial security
📝 Creating Your Budget
Start by tracking all your income (allowance, part-time job, gifts) and expenses for one month. Then categorize everything and see where your money actually goes. Use apps or spreadsheets to make it easy!
- •Be honest about your spending - track everything
- •Review and adjust monthly - budgets aren't set in stone
- •Build in some flexibility for unexpected expenses