When you get your pocket money or, once you are older and start to receive wages from employment, it can be really exciting and you may want to spend your money all at once. However, budgeting is important. Having a budget plan can help you work out exactly what’s coming in and what’s going out, so you know how much you have to spend each week or month.
A budget is a plan that details all of your income (pocket money/wages) and outgoings (going out, mobile phone bill, music streaming subscriptions etc) and once you have deducted your outgoings from your income you will be left with the amount of money you have spare - this known as your disposable income. From this, you can decide how much you might want to save.
Without a budget, it can be easy to overspend which may lead to not having money left to save. Sticking to a budget will help you manage your money better and make it easier to keep track of everything. Getting into good habits now will put you in good stead for when you are older. Look at our Financial Quiz which will help you to get on the right track with your financial habits.