Money Skills Hub

Spend Wise: Teen Budgeting

Managing money as a teenager can be both exciting and overwhelming. Whether you're earning from a part-time job or receiving pocket money, learning how to budget early sets the foundation for lifelong financial success. Here's how to make the most of your income and avoid common money traps.

Understanding Your Money

Whether it’s your first paycheck, some birthday money, or a regular allowance, what you do with your income matters. Learning how to manage your money helps you build confidence and make smart choices. Start by keeping track of what you earn, thinking carefully before spending, and saving a little when you can. These small steps help you build confidence and good habits for the future.

Budgeting Basics

A budget is simply a plan for your money and helps you stay in control. Here are some steps to create a simple budget:

 
  1. List your income: Include everything, like job, pocket money, gifts.
  2. Track your expenses: Write down everything you spend money on, from snacks to subscriptions.
  3. Categorise spending: Group expenses into needs (like travel) and wants (like subscriptions for Netflix, Spotify etc).
  4. Adjust as needed: If you're spending too much in one area, cut back in another.

Need a guide?

Our friends at Talk About Money have put together a super simple guide to help you take your first steps into budgeting.

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Think Before You Spend

Impulse buying is one of the biggest threats to a solid budget. It’s easy to get tempted - whether it’s a flash sale online, a trending item on social media, or just seeing your friends buy something new. These quick decisions might feel good in the moment, but they can leave you with less money for the things you actually care about.

Learning to pause and think before spending helps you stay in control and avoid regret later. It’s not about never buying anything fun - it’s about making sure your money goes toward what really matters to you.

How to Stay in Control:

 
  1. Wait 24 hours: If you see something you want, give yourself a day to think it over.
  2. Ask yourself why: Do you really need it, or is it just a passing desire?
  3. Stick to a list: When shopping, make a list and avoid browsing beyond it.

Setting Goals

It’s easy to spend money as soon as you get it, but saving for something meaningful can be way more rewarding. Whether it’s a new phone, concert tickets, or even your first car, having a goal makes it easier to stay focused and skip the small stuff that doesn’t really matter.

Start by picking one thing you really want, then figure out how much it costs and how long it might take to save up. To help you stay on track, you could consider opening an easy access savings account. It’s a simple way to keep your money safe, separate from your everyday spending, and still available when you need it. Watching your savings grow over time can be super motivating - and reaching your goal feels amazing.

Start Smart, Stay Confident

Learning how to manage money, whether it’s from a job, allowance, or gifts, is a big step toward independence. It’s not just about budgeting, but about making thoughtful choices, setting goals, and understanding what matters to you. The habits you build now can help you feel more confident, avoid stress, and enjoy the freedom that comes with being in control of your finances. Start small, stay curious, and remember: every smart decision adds up.

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