For a teenager or college student, creating and sticking to a budget doesn’t have to be difficult. Know your income, plan for your needs, and track your expenses.
Income:
Know where your money is going to come from (home, a part-time job, financial aid) and when it will be available (at the beginning of each semester, once a month, or every week.) Do not spend more than your income.
Needs and wants:
Know the difference, and cover the needs before wants. For instance, when considering expenses, buying groceries or eating in the cafeteria is a need, while eating out at a restaurant is a want.
Planning ahead:
Prepare for big expenses by setting aside money on a regular basis. Or, if you only get your income once a semester or once a month, set money aside at that time before budgeting for your normal weekly expenses.
Tracking expenses:
Keep track of where your money is going – using a spreadsheet, an online tool like BUDGETS in Patelco Online™, or simple pencil-and-paper. Make adjustments to your budget if needed, and remember that spending more in one area means spending less in another.