Imagine a friendly couple walking through our doors at First Alliance Credit Union—mom and dad looking slightly stressed about money, and their eager teenager Mia beside them. Their teen has been hustling all season, odd jobs like babysitting, pet-sitting for neighbors, mowing lawns in the summer , and shoveling snowy driveways in the winter, trying to save up for a dream purchase. They’ve all come to sit down with LeAnne Trom, our Loan Administration Manager, to figure out how to create a budget that helps them spend wisely while still working toward big goals. That’s exactly what we’re talking about today!
In this post, Leanne will dive deep into budgeting basics—what a budget really is, why it matters, and how to build one that you’ll actually stick to. Whether you’re 15 or 50, this guide will show you how to take control of your money so you can work toward whatever it is you’re dreaming of, without feeling overwhelmed or restricted. Let’s jump in!
A budget is simply a plan for where your money goes. Some people think budgeting sounds boring or even scary, because it feels like you’re putting restrictions on yourself. However, a budget is actually the opposite: it gives you freedom to spend on what matters most to you without worrying about running out of cash for important stuff later.
Leanne says: “Think of a budget as a financial roadmap: where is your money coming from, and where does it need to go? Once you know that, you’re in control of your spending instead of your spending controlling you!”
Budgeting is the foundation of good money management. Here’s why:
Clarity: It shows you exactly how much money you have coming in (income) and going out (expenses).
Goals: It helps you set goals, like saving for a car, a vacation, or even buying a phone without needing to borrow money.
Control: You get to decide what’s important and what’s not. If you want that new pair of sneakers or to save for college, a budget helps you plan for it.
Confidence: When you know where your money is going, you’re less likely to stress about unexpected costs—like needing to replace a lost phone charger or saving up for school trips.
Leanne reminds us: “Budgeting can give you a sense of financial freedom. Once you’ve paid your bills or saved for a goal, you can treat yourself without guilt!”
Let’s talk about their teenager Mia—a 19-year-old who loves playing soccer and dreams of going to Thailand next summer. Mia works odd jobs like babysitting, pet-sitting for neighbors, and shoveling snow in the winter. She knows she should be saving, but whenever she earns money, she’s tempted to spend it right away on snacks with friends.
Mia decided to create her first-ever budget. She wrote down her average monthly earnings and listed her usual expenses: phone bill contribution, soccer gear, and personal spending. After looking at her bank statement for the past month, she realized she was spending way more on takeout and weekend hangouts than she thought!
Here’s what she did:
Set a Goal: After much negations, Mia was able to convince her parents, that if she was able to come up with half the money for the trip, they would help her with rest of the money! Mia wanted to save $800 for her trip to Thailand with her friends.
Track Income: She calculated she earned about $60 a month from babysitting and another $40 from miscellaneous chores. She was also making about $25 a week with her dog-walking side hustle —so $200 total, on average
List Expenses: Mia spent $20 on her phone bill, $30 on random outings, and often another $20 on sports snacks and gear.
Adjust and Plan: Mia decided to cut back on hangouts (from $30 to $15 a month) and put that extra $15 into her Thailand fund. She also started bringing homemade snacks to soccer practice, saving about $10 more a month. Now she’s putting an additional $25 a month into her savings—over 80% of her monthly earnings.
A few months in, Mia proudly saw her money growing. She felt excited, not restricted. In fact, planning her spending freed her to feel good about the occasional ice cream with friends, because she knew she wasn’t messing up her vacation goals.
Ready to follow in Mia’s footsteps (or LeAnne’s expert advice)? Here are the basic steps to creating your first budget:
Figure Out Your Income - If you get a regular paycheck, jot down your after-tax (net) amount. If you babysit or do gig work, think about your average monthly income.
List Your Expenses - fixed vs variable expenses - Start with fixed expenses: phone bills, memberships, and any monthly payments you must make. Include variable expenses: groceries, gas, or occasional splurges. Look at your bank statements or receipts if you’re not sure.
Set Your Goals - Ask yourself, “What do I really want to do with my money?” That might be saving for a computer, car, or future college fund. Create realistic amounts to save each month.
Track Your Spending - Write everything down in a notebook or a simple budgeting spreadsheet. Check your bank statements or online banking to see where every dollar went.
Review and Adjust - Some months, you’ll spend more on certain things (like holiday gifts or school events). That’s normal! If you overspend in one category (like streaming services or snacks), see if you can adjust another category next month.
What if your income changes every month, like if you’re a server relying on tips or you do seasonal work?
LeAnne explains: “You can still budget! Take an average of your tips or months of work. Plan for both high and low earning periods. Put some extra money into a savings or ‘cushion’ fund when times are good, so you won’t struggle in slower months.”
Even the best-laid plans can go sideways if you’re not careful. Watch out for these pitfalls:
If you live with parents or siblings who share the same pool of money, communication is key. This is especially true if you have a part-time job and contribute to some family expenses or personal savings goals.
LeAnne’s advice: “Sit down as a family and talk about where the money goes. When everyone is aware of expenses—like groceries, rent, and car payments—you can work together to set both short- and long-term goals. Encourage younger kids to save, too. Teach them the value of putting a portion of their allowance away each week.”
Try Different Budgeting Methods
Envelope System: Put cash in different envelopes labeled “Groceries,” “Entertainment,” “Savings,” etc. Once an envelope is empty, you stop spending in that category until next month.
Zero-Based Budget: Plan every dollar you earn to go somewhere—even if it’s just $5 for your “pizza night” fund—so you know where every penny is headed.
50/30/20 Rule: 50% for needs (rent, bills), 30% for wants (fun stuff), 20% for savings (future goals).
Celebrate Milestones- If you’ve stuck to your budget for a month or paid off a small debt, treat yourself—responsibly.
Keep It Simple - No fancy apps needed. A plain notebook, a pen, and a calculator (or the calculator app on your phone) can be enough when you’re getting started.
Lean on Resources - At First Alliance Credit Union, we have online resources, budget worksheets, and friendly team members ready to guide you.
Budgeting is your ticket to feeling confident about your money. As LeAnne says, it’s all about knowing where your hard-earned cash is going. And like Mia learned in our heartfelt example, once you see your savings grow, you’ll realize budgeting isn’t about feeling restricted—it’s about freedom and choice.
If you’re ready to take the next step, visit First Alliance Credit Union, and subscribe to our Good Money Moves podcast so you never miss an episode packed with helpful financial tips. Remember: your money should empower you to chase your dreams—no matter your age!
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