Back to Learn
GuidePersonal & Family· Beginner· 10 min
Part 2 of 2Teen Finance

Teach Your Teen to Budget an Allowance

A simple, repeatable way to help your teen split their money into spending, saving, and giving — and actually stick to it.

Once the account is open, the next lesson is budgeting. This short guide gives your teen a dead-simple system for deciding where their money goes before they spend it.

1

Split money into three buckets

The classic system still works: Spend, Save, and Give. When money comes in — allowance, a gift, a first paycheck — it gets divided across the three before anything is spent. Start with simple percentages like 70/20/10.

2

Make the buckets visible

Abstract numbers don't teach. Use separate labeled savings goals in the banking app, or literal jars for younger teens. Seeing the Save bucket grow is what makes the habit stick.

3

Review and adjust monthly

Sit down once a month and look at how the buckets did. Did the Save bucket get raided? Was the split realistic? Adjust the percentages together — the point is ownership, not perfection.