📘 Budgeting for Teens

“A budget is telling your money where to go — instead of wondering where it went.”
— Dave Ramsey

Welcome back!
You already know how to manage money and tell needs from wants.
Now it’s time to level up: let’s make your first real budget.

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💡 What Is a Budget (Really)?

A budget is a plan for your money — a roadmap that shows:

• what you earn,
• what you spend,
• and what you save.

Think of it like a Google Maps for your wallet:
you set your destination (goal), and your budget shows the best route.

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🎯 Why Budgeting Matters

Without a budget, money slips away like water through your fingers.
With a budget:

• You see where your money goes,
• You plan your spending,
• You avoid surprises,
• And you reach your goals faster.

Even if your income is small, practicing now makes you unstoppable later.

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🧮 The Basic Formula

Budget = Income – Expenses

If the result is positive → 🎉 you’re saving!
If it’s negative → ⚠️ time to adjust your spending.

Example:

Description	Amount
Monthly allowance	+$40
Snacks & treats	-$15
Transport	-$10
Savings	-$10
Balance	+$5 ✅

See? Simple math — powerful results.

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📋 Step-by-Step: How to Make Your First Budget

1️⃣ List Your Income Sources

Include everything:

• Allowance
• Part-time job
• Gifts or occasional work
  Write down how much and how often you get it.

2️⃣ Track Your Expenses

Spend a week noting every purchase. Yes, every one — even that $1 soda.

You’ll be surprised how the small stuff adds up.

3️⃣ Categorize

Group your spending into:

• Needs 🧾
• Wants 🎮
• Savings 💰
• Giving ❤️

4️⃣ Set a Goal

What do you want to achieve?
→ “Save $100 for a bike.”
→ “Buy gifts for my family.”
→ “Have an emergency fund.”

5️⃣ Make Adjustments

If your spending is too high, cut some wants.
If you have extra — increase savings.

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🧠 Example: The 4-Jar Method

A classic visual tool for beginners — divide your money into four jars:

Jar	Purpose	Example
💵 Spend	Daily use	Snacks, movies
💰 Save	Future goals	Laptop, bike
❤️ Give	Help others	Charity, gifts
🧾 Learn	Invest in yourself	Courses, books

It works with physical jars, envelopes, or even phone “wallets.”
Every time you get money, split it right away.
You’ll instantly see where your money “lives.”

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🧩 Budget Template (Printable or Digital)

Here’s a simple starter format you can recreate in a notebook or spreadsheet:

Category	Planned	Spent	Difference
Needs	$20	$18	+$2
Wants	$10	$12	-$2
Savings	$8	$8	$0
Giving	$2	$2	$0
Total	$40	$40	✅ Balanced!

✅ Tip: Review your budget every Sunday evening.
It takes 5 minutes and saves you from 5 headaches later.

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💬 Real-Life Story: Emma’s Ice Cream Fund

Emma wanted to go on a school trip that cost $100.
She had no job — only a small weekly allowance.

So she made a simple budget:

• Save $5 each week,
• Spend $10 on essentials,
• Skip buying sodas for a month.

In 20 weeks, she reached her goal.
No magic. Just consistency.

Budgeting isn’t about limits — it’s about giving your money a mission.

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🧩 Mini-Exercise: “My First Budget”

Let’s make it real:

1. Write your income for the month.
2. List your expenses and group them (Needs, Wants, Savings, Giving).
3. Create your goal (short-term or long-term).
4. Review your balance.

💡 Optional: Take a photo of your budget plan and keep it as a reminder for next month.

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📚 Summary

Concept	Meaning
Budget	A plan for income and expenses
Goal	What you’re saving toward
Tracking	Watching where your money goes
Adjustment	Changing your plan when needed
Consistency	The key to success

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🏆 Reflection Badge: Budget Builder

Complete this lesson and make your first personal budget to earn your Budget Builder Badge!

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🧭 What’s Next?

Now that you can plan and track your money, it’s time to put your skills to the test!
In the next lesson, you’ll try a fun, interactive experience —
the Pocket Money Simulation, where you’ll make real-life financial decisions.

👉 Start Simulation →

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