A budget is simply a plan for your money.
It helps you decide how much to spend, save, and share; before you actually do it. Think of your money as a pizza. Without a plan, you might eat all the slices right away. But if you plan, you can enjoy a few now, save some for later, and even share one with a friend. That’s what a budget does, it gives every rupee a role.

You might think, “I don’t even earn yet, so why should I budget?”

Here’s why:

• You’re already handling money, even if it’s pocket money or gifts.

• You’ll soon earn through part-time jobs, internships, or side hustles.

• Learning early builds financial confidence.

Before you can budget, you need to know what’s coming in.

This could include:

• Monthly pocket money.

• Gifts during festivals or birthdays.

• Small earnings (babysitting, tutoring, selling art, etc.).

Write it down. Even if it’s ₹500 or ₹2000 : every rupee counts.

Most of us spend without realizing how much.Start tracking your expenses for one week; note down every rupee you spend.

A small notebook

A budgeting app (like Walnut, Spendee, or Money Manager)Even a simple Google Sheet

Categorize your spending:

• Food & snacks 

• Entertainment 

• Shopping 

• Gifts or donations 

• Savings 

Once you see your spending habits clearly, you’ll spot where money leaks out unnecessarily.

What do you want to do with your money?

Your goals could be:

• Short-term: Save ₹500 for a book or concert ticket.

• Medium-term: Buy a new phone or cycle.

• Long-term: Build an emergency fund or start investing (yes, even teens can learn how!).

Write down your goals and attach a timeline. Goals give your budget direction.

A simple rule many people use is the 50-30-20 rule; modifying it for teens:

• 50% – Spending → Snacks, outings, subscriptions.

• 30% – Savings → For your goals or future.

• 20% – Sharing or Learning → Gifting, donating, or investing in skills.

You can tweak this based on your situation. The idea is to give your money clear categories instead of random spending.

Saving doesn’t mean cutting off all fun. It means being smart enough to plan for fun later.

Open a student savings account or use a digital wallet to store your money separately.
Even saving ₹100 a week adds up to ₹5,300 a year, proof that small steps create big impact.

Pro tip: Automate it. The moment you get money, move a portion to savings right away. That’s called “Paying Yourself First.”

Your first budget won’t be perfect and that’s okay!
At the end of the month, review it:

• Did you overspend in any category?

• Did you hit your savings goal?

• What can you do better next month?

Budgeting is like learning to drive, it gets smoother with practice.

When you learn to budget, you’re not just managing numbers, you’re shaping habits that lead to financial freedom.

It teaches you:
a) Self-control – because you learn to delay gratification.
b)  Responsibility – because you plan your own money.
c) Confidence – because you know where your money goes.

Even small budgeting habits today can help you avoid debt, make smarter financial decisions, and build wealth in your 20s and beyond.