Budgeting 101: Real-World Money Tips for Teens and Young Adults
Your Money Should Work for You - Not the Other Way Around
Let’s be honest: no one teaches you how to budget in school. You hear about algebra and Shakespeare, but not how to avoid blowing your whole paycheck in two days. That’s where we come in.
At Prospera, we believe financial confidence starts early. And budgeting? It’s your first superpower.
Wait, What Is a Budget, Anyway?
Think of a budget like a plan for your money — not a punishment. It’s not about cutting out all the fun stuff. It’s about knowing what you can afford and making sure you’re still moving toward the things that matter (like saving for your first car, or that spring break trip).
Why Budgeting Matters Now (Yes, Even If You're Still in High School)
- You start building money habits early - good or bad
- It's easier to reach goals (event short-term ones) when you know where your money is going.
- Budgeting gives you confidence to make smart choices without constantly wondering, "Can I afford this?"
The 50 / 30/ 20 Rule (A Simple Way to Start)
Here’s a super simple breakdown that can help you start thinking about your spending:
- 50% – Needs (essentials like gas, food, or phone bill)
- 30% – Wants (fun stuff like concerts, snacks, streaming subscriptions)
- 20% – Savings (future goals, emergency funds, or a dream purchase)
It doesn’t have to be perfect — the point is to get into the habit of thinking ahead.
How to Start (Without Getting Overwhelmed)
Track your spending for 7 days.
Use your phone’s notes app or a free budgeting app. Just write down everything — even that $4 boba tea.
Look for patterns.
Are you spending a ton on takeout? Or subscriptions you forgot about?
Set a small goal.
Want to save $100 in a month? Cool. Now you can figure out what to cut back on to make it happen.
Adjust as you go.
Budgets aren’t one-size-fits-all. They’re flexible and meant to evolve with you.
Budgeting = Freedom, Not Limits
Here’s the truth: when you know where your money’s going, you’re in control. You don’t have to guess or stress — you can make informed choices. Whether you're saving for college, your first apartment, or just trying not to go broke by Tuesday, budgeting is your first step toward financial freedom.
Pro Tip from Prospera: Start small. Even just knowing what you spend each week can make a huge difference. And if you’re ready to take your financial skills to the next level, we’re always here to help.
Because at Prospera, we believe in giving you the tools to prosper - at every age.
Start Strong. Grow Smart. Prosper Early.
Whether you're heading off to college, saving for your next big goal, or learning how to manage money on your own, Prospera is here to help. With digital tools, easy-to-use accounts, and real people ready to guide you, we make it simple to start strong, and keep growing.
This is more than banking. It’s your journey toward independence...and we’re with you every step of the way to help you prosper.