Learning how to budget is one of the most important life skills a teen can develop. Whether you’re earning money from a part-time job, getting an allowance, or saving birthday cash, knowing how to manage it wisely sets you up for financial success now—and in the future.
Here are five practical and teen-friendly ways to start budgeting and building smart money habits:
1. Know Your Income (Even If It’s Small)
Budgeting starts with knowing how much money you have coming in. This could be weekly allowance, babysitting money, or a paycheck from your part-time job. Track it consistently so you know what you’re working with.
📱 Try This: Use a budgeting app or a simple spreadsheet to log your income.
2. Break It Down: Needs, Wants, and Savings
Once you know your income, divide it into three categories:
- Needs: Essentials like school supplies, transportation, or phone bills
- Wants: Fun stuff like clothes, games, or going out with friends
- Savings: For future goals like college, a car, or emergencies
💡 Tip: A good rule of thumb is 50% needs, 30% wants, and 20% savings—but you can adjust based on your goals.
3. Set Short-Term and Long-Term Goals
Budgeting is easier when you have something to work toward. Want to buy concert tickets next month? Save for a laptop next year? Set clear goals and track your progress.
🎯 Pro Tip: Write down your goals and keep them visible—on your phone, mirror, or notebook.
4. Track Your Spending
It’s easy to lose track of small purchases like snacks or app subscriptions. Keep a spending journal or use a budgeting app to see where your money goes. You might be surprised how quickly it adds up!
📊 Bonus: Review your spending weekly to spot patterns and make adjustments.
5. Open a Student Checking Account
Managing your money is easier with the right tools. A Student Checking Account gives you access to online banking, debit cards, and helps you learn how to manage real-world finances safely.
🏦 Visit a Midwest Bank location to open your Student Checking Account—designed just for teens, with no monthly fees and easy access to your money.
Budgeting = Freedom
Budgeting isn’t about restrictions—it’s about freedom. When you know where your money is going, you’re in control. You can make smarter choices, reach your goals faster, and feel confident about your financial future.
Want more tips? Check out our blog series on financial literacy for kids, teens, and college students—and explore how our student accounts can help you build strong money habits from the start.