How teenagers can master the art of budgeting
1.What is a budget? Itâs a financial plan. A tool to track income and expenses. A roadmap for your spending goals. A way to control
1.What is a budget? Itâs a financial plan. A tool to track income and expenses. A roadmap for your spending goals. A way to control your cash flow. 2.How does it work? Before you continue reading How financially free are you? Most people overestimate their financial freedom. Discover your Financial Freedom score through a quick survey Calculate My Score 3.The Teen 70/20/10 budget rule 4.Why you need budgeting? It prepares you for real life: You learn to plan and prioritise before you spend Stops impulse buys: Passing trends don't get to empty your wallet Builds independence: You don't have to ask your parents for every little thing Teaches patience: Saving up for new shoes or that gadget makes them feel earned 5.Money challenge Start by writing down how much pocket money you get every week or month.
Divide your allowance into three parts Review your budget. You have officially built and analysed your very first budget! Money fact How much money is available? Calculate from all sources. What are the priorities? Schools, hospitals, roads, transport, defence and public safety? How much should be saved/ borrowed? What can wait until later? A budget is a plan that helps you manage your money. You decide in advance how you'll use it for your needs and your enjoyment. Just like a cricket team plans how to score runs, your budget helps you plan how you will use your pocket money.You need to plan how you are going to use it:Stationery essentials, printing, or project materialsSchool snacks or outings with friends: Setting aside money for a school trip Instead of asking âWhere did my money disappear?â you know exactly where it went.Needs:Rs.1,750Fun:Rs.500Savings and emergency fund:Rs.250A budget doesnât tie you down; it gives you the freedom to spend guilt-free because you have a plan in place.â for your needsâ for funâ for future goalsCheck if you saved and spent, as planned.
Analyse your mistakesâlike overspending on snacksâand adjust your targets, because budgets get better with practice.A student might budget Rs.2,500 a month, while a government manages
trillions of rupees at the start of each year. The amount is different, but the questions are the same
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