Budgeting for teens is a crucial skill that helps manage money effectively. It involves planning income, spending, and savings. Teens often feel pressure to keep up with friends’ spending habits, which can lead to financial stress. Budgeting helps avoid this by providing a clear plan for money. It starts with identifying a savings goal, knowing your income, and dividing spending into needs and wants. Regularly tracking expenses ensures the effectiveness of the budget. Understanding budgeting for teens can lead to better financial health and independence.