How do you make a budget for a teenager?

A budget provides an easy way for a teenager to track income and expenses and to establish financial goals. When the budget is finished, follow it regularly and carefully for best results.

1. Decide what method to use

   First, decide how to make the budget. You can create a budget by hand or create a spreadsheet with budget software on the computer. Choose the method you are most comfortable with, so you and the teenager are most likely to use it regularly.

2. Add income sources

   Add up the income the teenager receives each month. Make separate categories for job earnings, allowances or other income sources, if appropriate.

3. Add current expenses

   Next, determine the teenager's current expenses by adding all spending from the previous month. This shows how the teenager has been spending his money.

4. Plan future expenses

   Subtract current expenses from current monthly income to find the balance. The income should always be higher than the expenses. If the teenager has a financial goal, such as saving $500 per year or buying a $200 camera, add these goals to the budget. Divide the total yearly fiscal requirement for the goal by 12 to set a savings goal for that particular expense.