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Let’s be real: budgeting can sound complicated and it’s easy to push it off for later. But here’s the truth - budgeting isn’t about cutting out everything fun. It’s about making sure you always have money for the things you love, like seeing your favorite musical artist and traveling with your friends.

Whether you’re sixteen and just starting to earn money, or in your twenties and juggling bills and loan payments, this guide will help you build a budget that fits your life - not the other way around.

Why Budgeting Matters (Even If You’re Not Making Bank Yet)

You might feel like you don’t earn enough to budget. But budgeting isn’t about how much you make; it’s about how you use what you have. Learning to manage your money now sets you up for long-term success. Plus, it helps you avoid the stress of wondering where your paycheck went.

Budgeting gives you control. It helps you say “yes” to things you care about and “no” to stuff that doesn’t matter. And it’s not just about saving - it’s about spending smarter.

Step 1: Track Your Spending

Before you build a budget, you need to know your spending habits. Pull up your bank statements and money sharing apps and use a budgeting app or take notes to begin categorizing your spending.

• Food (groceries, food delivery, eating out)
• Personal care (shampoo, toothpaste, other pharmacy items)
• Subscriptions (streaming services, music app and others)
• Debt payments (credit cards, student loans, car loan)
• Savings (even if it’s just $5/month)

Taking a closer look, you’ll probably be surprised by how much goes to food delivery or random online buys. That’s okay! This isn’t about guilt - it’s about awareness.

Step 2: Set Your Money Goals

What do you want your money to do for you?

• Save for a trip
• Buy a car
• Get a new apartment
• Build an emergency fund
• Pay off a credit card

Pick 1–2 goals to start. Write them down. Having a goal makes budgeting feel like a game you’re winning, not a chore you’re stuck with.

Step 3: Build Your Budget

Try the 50/30/20 rule:

• 50% Needs: Rent, groceries, transportation
• 30% Wants: Food delivery, concerts, shopping
• 20% Savings: Emergency fund, debt payments, retirement savings

If your income is low, adjust the percentages. The point is to plan your spending, not restrict it.

Step 4: Use Tools That Make It Easy

Budgeting doesn’t have to be done with spreadsheets. Use mobile tools that fit your lifestyle:

• United App: Go to Financial Tools > Budgeting. You can link accounts, categorize spending, and see visual dashboards 
• Apps like Rocket Money, YNAB, or Goodbudget: These help you track spending and set goals.
• Venmo & Cash App: Use notes and tags to track what you’re sending and why.

Automation is your friend. Set up auto-transfers to savings. Use alerts to avoid overdrafts. Let tech do the heavy lifting.

Step 5: Adjust As You Go

Life changes - your budget should too. Got a raise? Add more to savings. Lost a job? Cut back on subscriptions. Took out a car loan? Rework your monthly plan. Budgeting isn’t one-size-fits-all. It’s a living document that grows with you.

One thing to avoid is lifestyle creep – when you upgrade things like your apartment, car, and wardrobe every time your income increases. It may feel reasonable to treat yourself to nicer things, but may cause you to get stuck living paycheck-to-paycheck even when you make much more than you did years ago. Designing a budget will help you avoid the lifestyle creep trap!

Step 6: Don’t Let Money Stress You Out

Budgeting can bring up emotions. You might feel like you’re behind, not making enough, or failing. That’s normal. You’re not alone, and these feelings are temporary.

Creating a budget is a powerful step toward financial freedom. It’s not about being perfect. It’s about being intentional.

Tips for Ages 16–17

If you’re under 18, you might not have access to all banking tools yet. That’s okay!

• Track spending manually or with free apps
• Talk to your parents about opening a joint account
• Start saving—even if it’s just birthday money

You’re building habits that will pay off big time later.

Budgeting isn’t about saying “no” to fun. It’s about saying “yes” to your future. Whether you’re saving for a trip, trying to stop living paycheck to paycheck, or just want to feel more in control - your budget is your roadmap.

You’ve got this. And the best part? You’re starting early. That’s something most people wish they had done.