A guide to budgeting for teens
Whether you're receiving an allowance, celebrating with gift money, or earning your first cash, you have a valuable opportunity to master a truly important skill: budgeting. And developing the basic financial habits around it now is incredibly beneficial for later in life.
Learning how to budget as a teenager helps you be in control of how you spend and gives you confidence in how you manage your money, helping you make smart choices that could lead to more independence.
Importantly, budgeting isn't about limiting yourself; it’s about purposefully directing your money towards what you truly want – whether that's saving for a new gadget, an unforgettable experience, or any other goal that deeply matters to you.
Here’s a closer look at different ways to budget so that you can lay the groundwork for a healthy financial life.
The 50-30-20 rule
The 50-30-20 budgeting method offers a straightforward framework for allocating your money so that you are purposeful about how much goes to what. Whether your income stems from a part-time job, an allowance or other sources, here’s how it typically works.
| 50% for needs | 30% for wants | 20% for savings |
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To easily create a budget with the 50-30-20 rule, use our free budget template.
Goal-based budgeting
This approach focuses on what you want to achieve. Think about a few specific things you're saving for, such as new tech, sneakers or fashion, concert tickets, a special trip or even driving lessons. Then, figure out how much each goal costs and when you want to reach it.
Break down that total amount into smaller, weekly or monthly savings targets. This makes budgeting feel less like a chore and more like a clear plan to get what you really want. For example:
| Your goal | Total cost | Target date (When do you want it?) | Amount saved each month |
|---|---|---|---|
| New headphones | R650 | 3 months | R216.66 |
A step-by-step approach to your budget
Ready to make your own money plan? Here’s what to have in place:
- Know your incoming money: Figure out exactly how much money you get and where it comes from. This could be your allowance, earnings from a part-time job, money from side gigs or gifts. Knowing your total income is the first step to smart money management.
- Track your spending: For 1 or 2 weeks, write down everything you spend money on so that you know where your money goes and understand how you spend money. You can use a notebook, a notes app on your cellphone or an expense tracker.
- List your needs: Write down all your essential expenses. These are the regular payments you need to make for important things, such as your cellphone, necessary school supplies and transportation.
- Plan for what you want: Decide how much money you want to set aside for fun activities, social events, treats and things you want but don't strictly need. This is where budgeting helps you enjoy your money responsibly while staying within your plan.
- Pick your tools: Choose a way to keep track of your money that works for you. This could be a notebook, a simple spreadsheet or our Banking App.
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Disclaimer: This article is for information purposes only and does not constitute financial, tax or investment advice. Readers are strongly encouraged to seek financial or legal advice before making any decisions based on the content.
Standard Bank, its subsidiaries or holding company, any subsidiary of the holding company and all of its subsidiaries, make no warranties or representations (implied or expressed) as to the accuracy, completeness, or suitability of the content of this article. The use of the article and any reliance on the content is at the reader’s risk.
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