Budgeting is an important skill to learn as a teenager because it will help you become more financially responsible as an adult.

When I first got my job, I was not responsible for any bills, so all my paychecks were money I could spend on anything I wanted. However, sometimes that would get to my head and I would end up with almost nothing left. I had no savings account either. The reason for this is because I was not caring for money and sometimes it will be easy to spend what you could make up, right? There are many ways to avoid overspending and I will share with you three budgeting tips and systems to use that will help you.

The first budgeting system is the 50/30/20 method. In this method, 50% of your monthly income will go into necessities, like bills, utilities, food, etc. 30% of that income would go into personal expenses, like vacation, eating out, memberships, etc. And 20% of that income would go into savings. My tip to you is that you should change the percentages to fit your needs and wants while still saving up money.

Another budgeting system is the Zero-Sum budgeting method. In this method, you will spend every single dollar, not in the way you think though. In other words, you will tell every dollar where to go. For example, after paying for all your needs, say you have $500 left, with this method you would put that money into sinking funds, or something you want to achieve that may cost a lot of money. I would suggest you put all your “extra” money into areas that you want to see yourself improve with.

Lastly, the envelope budgeting system. In this method, you mainly use cash. I personally use this method because it really makes me self-aware of how much money I have for my expenses. Basically, you have a mini-binder with envelopes that have labels of what they are, for example, self-care, eating out, bills, etc. After every paycheck, you put money in these envelopes as a way to limit how much you can spend on that  category for that month. I suggest you look into these budgeting systems in depth to see which one could work for you and help you save money while still having fun!