![]() Ideally, teens should learn about budgeting and acquire real money skills well before they move out and have rent payments and other monthly expenses to worry about. If they’re always spending more than they’re making, one of the people is going to lose their balance and fall off. With a budget, they have to balance the weight of money coming in (income) and the weight of money going out (expenses). Teens should think about a budget like a see-saw with one person sitting on each end. You don’t have to be a financial advisor to teach your teen why budgeting is important-keep these kinds of discussions on the lighter side. And when you have a plan, you know that you’ll have enough for the things you need to pay for (like your monthly rent), a little extra for unexpected costs (like those gym shoes that went missing), and hopefully some leftover funds to pay for the things you want (like an occasional dinner out with your besties). When you create a budget, you’re making a plan for how to spend your money. ![]() Having a budget means tracking the money that comes in (via income or allowance) and the money that goes out (for things like bills, groceries, and entertainment). Parents can help their kids create a budget by deciding on their needs, wants, and savings goals.The four key components of a budget are: income, expenses, savings, and debt. ![]() Budgeting is important in helping tweens and teens to learn how to manage their money and become independent. ![]()
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