Need advice on your budget? Ascend members can schedule a free financial health checkup at ascend.org/schedule. 

Managing your money for the first time may sound complicated or even intimidating, but it doesn’t have to be. You don’t have to say no to everything fun, either — just as long as you have the right budget in place. 

If you need help getting started, Ascend offers a free budget worksheet that can walk you through it. When you’re creating your first budget, it’s not necessary to have a detailed plan for every dollar you earn. You just need to follow a few simple steps to make your budget most effective: 

1. Take care of what matters most 

To begin your budget, make a list of your essential expenses each month. These are nonnegotiable items each month — they must be paid. For teens, that could include gas or transportation, school supplies or extracurricular activity costs, or helping with a phone bill. 

2. Set some aside for your goals 

After your essentials are taken into consideration, make a list of your priorities or goals you want to save for, like a trip, car, computer, or college. Determine when you want to reach your goal and calculate how much you need to save monthly to meet your deadline. 

3. Spend what’s left 

Whatever money you have left after saving for your goals and covering your essentials is yours to spend. Just keep an eye on your balance so you don’t overdraft on your account. 

If you have money left at the end of the month, that’s a win. Some months you may spend more, and some months less. That’s normal, and you can adjust. What matters is that, over time, you’re not spending more than you make. 

4. Set up direct deposit (if you have a job) 

The easiest way to stay consistent with your savings is to make it automatic and set up direct deposit if you have a job. It will help you build good habits, and you won’t have to remember to put your check in every pay period.   

Start with these simple steps, stick with them, and you’ll build strong money habits quickly. And remember — budgeting isn’t about perfection, it’s about making intentional choices with your money and adjusting as your needs change. The sooner you develop a system that works for you, the more confident you’ll feel managing your finances now and in the future. 

Need advice on your budget? Ascend members can schedule a free financial health checkup at ascend.org/schedule. 

Ascend is federally insured by the NCUA.