Budgeting 101 For Teens
New to budgeting? Not sure how to get started? You've come to the right place!
In this week's blog, we're answering teens' most commonly asked questions when creating - and succeeding with - their first budget.
1)"Do I really need a budget?"
If you want to get better at managing your money, you definitely need a budget!
Setting up a budget will give your pocket money (or money earned through your weekend job) a purpose, and will help make your money last longer throughout the month. You'll be able to budget for all the things you like to do - seeing friends on the weekend, trips to the cinema, or even gaming, whilst keeping your spending in check.
There are so many benefits to setting up a budget, so what are you waiting for? Click here for our tips on creating your very first budget.
2)"Which budgeting method should I use?"
When it comes to choosing a budgeting method, It's all about picking the one that's best suited for you.
Mint provides a solid breakdown of some of the most popular budgeting methods (and for good reason!), which we've listed below:
“Pay Yourself First” method: Paying yourself first means that you immediately put a certain amount or percentage of your income into savings. Whatever money is left over can be spent however you choose!
Zero-based budgeting: Want to account for every dollar in your budget? This method operates on the idea that when you subtract your expenses from your income, the result is zero. Estimate the cost of each budget category and divvy up your income until you hit zero, using those estimates as a guide.
50/30/20 rule: This rule budgets your money based on the following percentages: 50% for necessary expenses, 30 % for other expenses, and 20% for savings. These percentages can be altered to fit your needs, and if you don’t have many expenses, you may want to contribute a larger percentage toward savings.
Don't forget that you can also switch up your budgeting method month by month to see which one works out best for you - which brings us to our next question...
3)"How often should I update my budget?"
Ideally, you should be checking in with your budget every month, at the very least. However, it's even better if you can get into the habit of checking in with your budget at the end of every week to really keep track of your spending.
Schedule budget check-ins on a weekly/monthly basis to assess what needs improving/amending and work out an action plan going forward.
4)"What's the best way to track my spending?"
If Excel spreadsheets make your brain hurt, there are lots of budgeting apps out there to track your spending for you.
With the ImageNPay app, you can track every purchase in real time and even view past transactions to get a good idea of where your money is going. With our ImageNPay family features, you can also request top-ups from your parents if money is running low!
If you’re a teen looking to level up your budgeting skills, the ImageNPay app can help 👇
Top up your personalised card with an allowance you set, request money from parents, and shop online and in-store with Apple Pay and Google Pay!
Tap the link below to find out more on how an ImageNPay prepaid card can help you budget & download FREE today: