Showing your teens how to budget sets them up for success. The earlier you do it, the faster it becomes second nature for them. Seeing their expenditure set out clearly can help them spend within their means. And that benefits their overall financial education.
Related: Money management for teens
Budget planner worksheets for teens
Your teen may roll their eyes at the thought of using a budget planner. But seeing their spending in black and white really helps drive home messages about money and financial management.
“Budgeting is a life skill because it introduces life lessons like patience, planning ahead, and smart decision-making,” says Beth Zemble, VP of Education, at GoHenry. “Teens who budget are planning ahead, setting their goals (both short- and long- term), and learning to live within their means, delaying gratification and restraining their spending habits.”
“Budgeting also teaches teens to create a plan for saving,” adds Beth. “It reminds them to ‘pay yourself first’ and save money as part of a budget. They can budget to give or to invest too. That way they’re also learning to think about their future and consider what they can risk as part of their budget.”
Studies show that writing things down triggers more robust brain activity and is associated with stronger memory retrieval. If your teen fills in a budget planner, they’re more likely to think about what they are spending. It’ll also remind them money isn’t an unlimited resource.
What’s more, allowing them to manage their own budget will help them feel in control of their finances. Then – hopefully – they’ll only spend what they can afford.
GoHenry budget planner
Download our free budget planner worksheet
To create a workable budget, you need to look at two things:
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Money coming in (income)
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Money going out (expenses/spending)
Explain to your teens that when their income is higher than their spending, they’re saving money and in a great position. However, when their spending exceeds their income, they risk falling into debt or not being able to buy items they need.
The aim of a budget is always to ensure you’re spending within your means. In other words, you have enough money to buy necessities as well as some of the things you want. A budget also helps you spot when you’re overspending and do something about it: spend less or earn more.
Examples of income teens can add to their budget
Our latest Youth Economy Report gives a unique insight into the earning habits of over 52,000 GoHenry kids in the US. A third of kids (34%) say they’re not earning enough. Fortunately, 78% of them are prepared to earn and save money themselves instead of relying on the bank of mom and dad.
Here are some of the most popular ways they earn money:
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Part-time job
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Paid chores
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Allowance
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Manual labor (cleaning etc)
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Caring, babysitting, pet-sitting/dog walking
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Online gaming
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Seasonal work
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Reselling items like clothes and trainers online
Examples of expenses teens can add to their budget
Everyone (including adults) is guilty of forgetting some of the items they pay for. That’s why listing expenses is such a helpful exercise. Here are some of the expenses your teen may have.
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Mobile phone
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Socializing
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Subscription to music and streaming services
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Coffees
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Takeouts
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In-app gaming purchases
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Travel
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Clothes
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Eating out
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Gaming consoles
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Subscriptions to apps and sites they no longer use
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Birthday gifts for friends and family
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Amazon buys
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Impulse buys
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Lending money to friends
How can I teach my teen about budgeting?
With teens, it’s a good idea to keep things as simple as possible to keep their attention. Start by covering essential budgeting topics such as:
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What’s a budget?
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Why you need a budget
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What a budget includes
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What are their money goals?
Then explain that a budget is a monthly spending plan outlining where their money comes from and where it goes. Stress that learning to budget now will give them a better relationship with money when they go to college and leave home.
How can GoHenry help your teen budget?
Use the budget planner alongside the GoHenry prepaid teen debit card and financial education app. It allows your child to view their expenses, set savings goals and see how much money they have left when they’re out and about.
Our in-app Money Missions also help teens develop their money skills through a series of bite-sized, interactive games and quizzes. Use the individual mission on budgeting to help with filling in the planner, and budgeting on the app.
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