Have you ever written down a budget for yourself? A budget has a lot in common with an income statement. While the income statement shows the money earned by the company minus the money spent to earn that money, a budget anticipates how much money will go in and how much money will go out. Using spreadsheet software (example are MS Excel or Google Sheets), prepare a monthly budget for yourself.
A 16 year old teen
may have a monthly budget that includes income from a part-time job, allowance, or other sources, as well as expenses such as transportation, food, entertainment, and savings. Here is an example of what a teenager's monthly budget might look like:
Income:
- Part-time job: $400
- Allowance: $50
- Total Income: $450
Expenses:
- Transportation (gas, public transportation): $50
- Food (groceries, eating out): $100
- Entertainment (movies, games, concerts): $50
- Savings (for future expenses, emergencies): $50
- Total Expenses: $250
Net Income (Income - Expenses): $200
Using spreadsheet software, you can create a simple budget like this to track your income and expenses each month. This can help you manage your money more effectively, set goals for saving or spending, and make adjustments as needed. It's also a good way to practice financial responsibility and learn how to prioritize your spending.