Start Strong, Dream Big: Budgeting for Teens

Posted on April 14, 2025 by Brandon Frey

Having cash of your own is great, but figuring out what to spend now or save for later can often feel a little overwhelming. That’s where budgeting comes in.

A budget is a plan that lets you see where your money goes every month. It’s not just about keeping track of your dollars. It’s about making sure you have the money you need to do what you love doing now while still preparing for the future.

In this blog, we uncover why it’s important, and introduce some powerful tools that make it easier for you to budget and manage your money in general. We’ll also share some practical tips to help you get started and provide a real-life example of how you can save successfully for something you really want.

Read on to learn more.

Smart Start: Teen Budgeting Made Easy

Whether you’re managing money from a part-time job, an allowance, or gifts from relatives, learning to budget your money as a teen can be a smart move. It helps you balance your spending and saving to avoid running out of money before the month ends. It also lets you plan ahead so you can save for your financial goals like a new game, concert tickets, or even a car.

Ready to get smart about money management? Let’s begin by explaining what budgeting is and how to do it.

What is Budgeting?

Budgeting is simply making a plan for your money. It’s a way to make sure your money lasts for the month with enough cash left over to put towards your savings goals.

Here’s how to make a budget in three easy steps:

Set a spending limit: Decide how much money you want to spend each month. This could be money you already have, or money you know you will get, such as from a part-time job or allowance.

Track what you earn and what you spend: Keep a record of everything that comes in and goes out, including earnings, allowance, and gifts, and spending on snacks, clothes, or hobbies.

Adjust as you go: Change your plan as you learn where you actually spend your money. Learn where you can cut back to free up funds for something else, or so you have more money left over to save for your bigger goals.

A budget is an evolving plan that should get more accurate and useful as you come to better understand what you really want (and need) to do every month.

Meet StartStrong Checking

Wouldn’t it be great if there was a convenient online way to manage your budget that’s also linked to the account where you keep your money?

StartStrong Checking from Jeanne D’Arc Credit Union does just that. Designed specifically for teens, StartStrong Checking is a fully featured checking account that gives you everything you need to budget and track your spending.

StartStrong Checking’s teen-friendly features include:

No monthly fees: Unlike many other checking accounts, StartStrong Checking charges no fee to open or maintain your account. You don’t have to worry about your money disappearing on charges.
Low opening deposit and no balance minimum: We want our banking services to be accessible. You can open an account with as little as $5 and after that, there’s no minimum balance requirement.
Easy-to-use mobile app: Manage your account from your phone, wherever you are, with tools to check your balance, track spending, and more.

Direct Your Spending with Money Compass

StartStrong Checking also comes with Money Compass, a built-in tool designed to help you budget your money right inside your checking account. When you opt-in to Money Compass, you can track and categorize your expenses, keeping tabs on your spending.

Here’s how Money Compass supports your budget:

Create Spending Categories: You can divide your spending into categories like “Fun,” “Food,” “Savings,” or “School Supplies.” This makes it easier for you to track where your money goes, so you can make adjustments if needed.
Set Monthly Budgets: You can also set limits for each category and monitor them throughout the month. For example, if you want to keep “Fun” spending under $20, Money Compass will help you see if you’re sticking to that goal.
Manage Your Spending: Money Compass also allows you to set larger saving goals, such as for a newly-released game or a car, so you can track your spending to balance current expenses and longer-term priorities.

You can also use Money Compass to view and manage accounts you may have with financial institutions outside of Jeanne D’Arc Credit Union. Just like a compass, it’s a great tool for finding the right direction for your spending and sticking to your course.

5 Tips for Budgeting with a Checking Account

You may be new to budgeting, but these practical tips will help you put both your budget and your checking account to great use. Here’s how to get started:

1. Categorize Your Expenses

First up, think about what you usually spend money on and decide on a few basic spending categories, from “hobbies” to “7-Eleven” to “gifts”. Put these into your Money Compass budget so you can see where your money is going and keep it organized.

2. Track Spending Habits

Every time you spend money, record it in Money Compass or in your own budget. Tracking your expenses in this way will quickly show you what you’re spending the most on, so you can adjust your purchases as necessary.

3. Set Reachable Goals

Pick something you’d like to save for. Start relatively small, say a concert ticket, headphones, or a fun outing with friends. This will motivate you to stick to your budget, and reaching your savings goal will give you the confidence to set more ambitious priorities.

4. Use Notifications for Alerts

Use the power of your phone to keep you on track. Because your Money Compass budget is integrated with your StartStrong Checking, you can set up notifications to alert you when you reach a spending limit in a category. Timely reminders keep you from overspending, allowing you to stay in control of your money.

5. Review Your Budget Regularly

Budgeting is not a one-and-done event. You should review your budget and see how you did. Were you able to stay within budget in your categories? Are you on track to reach your savings goals? Did unexpected expenses knock you off course? Use this information to adjust your budget so you can do better the next time.

Example: Reaching a Financial Goal with StartStrong

Let’s say you have a specific goal, like saving up for tickets to an upcoming concert. StartStrong Checking makes reaching that goal a lot easier. Here’s how you can use the account’s features and budgeting tools to make it happen:

Set your goal in Money Compass: First, set your goal amount—let’s say $100 for those concert tickets. Use Money Compass to track your progress toward this goal by categorizing any savings you set aside as your “Concert Fund.”
Create a specific savings category: If you want to make saving for this goal even easier, you can set up “Concert Tickets” as a dedicated savings category in Money Compass. This allows you to keep track of how much you’re saving each month for the tickets.
Limit your other spending: Unless you can figure out a way to make more money, saving for your concert tickets is going to need some sacrifices in your budget. For example, you could use Money Compass to set a smaller budget for “fun” spending, so you free up money for your concert fund.
Monitor your progress: Check in on your goal regularly to see how close you are to reaching it. By being realistic about your spending, you might be surprised how quickly you make progress towards attending that concert!

StartStrong with Jeanne D’Arc: Your Financial Launchpad

Learning to budget is an invaluable tool that will benefit you throughout your life. Learning to do it early can get you a headstart on saving towards important personal goals like college or a car.

Jeanne D’Arc Credit Union has designed the StartStrong Checking Account and Money Compass budgeting tool with the specific needs of our teen members in mind. With affordable, accessible banking and powerful money management tools, we aim to make taking charge of finances simple and straightforward for young people.

Ready to start budgeting so you can enjoy the things you love today while saving for the future? Click below to learn more about our StartStrong checking features and online budgeting tools.

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