Money Moves for Teens: Budgeting Basics for Prom and Beyond

High school comes with big expenses—prom, new kicks, or maybe even saving for a car. Learning how to manage your money now can make those dreams happen without the stress. The Stone Path Project’s Financial Pillar is all about building smart habits to set you up for success. Here’s how to start budgeting like a pro, even if you’re just working with your allowance or a part-time gig.

Step 1: Know What’s Coming In
Figure out how much money you’ve got each month—whether it’s from a job, allowance, or birthday cash. Write it down so you’ve got a clear starting point. For example, if you make $50 a week at a coffee shop, that’s $200 a month to work with.

Step 2: Track What’s Going Out
Keep tabs on where your money goes. For a week, jot down everything you spend—coffee runs, snacks, or that new phone case. One teen, Carlos, realized he was spending $30 a month on energy drinks and decided to cut back to save for prom tickets instead.

Step 3: Set a Goal and Save for It
Pick something you really want, like a prom outfit or concert tickets, and set a savings goal. If your dream dress costs $100 and prom’s in four months, save $25 a month. Stash that cash in a jar or a separate savings account so you’re not tempted to spend it.

Step 4: Use the 50/30/20 Rule
A simple trick: spend 50% of your money on needs (like school supplies), 30% on wants (like going out with friends), and save 20% for your goals. So, if you’ve got $200 a month, that’s $100 for needs, $60 for fun, and $40 to save. Adjust as needed, but it’s a solid starting point.

Money management doesn’t have to be boring—it’s about making your cash work for you. Start small, like tracking your spending this week, and watch how it adds up. You’ve got this!

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Written by Madison Stone.

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