Budgeting 101: A Beginner’s Guide to Managing Your Money

Let’s face it—managing money isn’t something we’re taught much in school. But learning how to budget now, while you’re still a student, can make a huge difference in how financially confident and secure you feel in the future.

So… what is a budget, anyway?

What Is a Budget?

A budget is simply a plan for your money. It helps you figure out:

• How much money you receive (like pocket money or allowances)

• Where that money is going (your spending)

Think of it like creating a roadmap: it shows you how to spend, save, and avoid going off-track.

How to Get Started

You don’t need to be a finance expert to make your first budget.

Here’s how to start:

1. Make an estimate of your monthly spending. Break it down into categories like:

• Snacks or food delivery

• School supplies

• Subscriptions (Spotify, Netflix, etc.)

• Transport (like Uber, metro, or school bus)

• Entertainment (movies, outings, etc.)

2. Track your spending for a few months. You can write it down in a notebook, use a spreadsheet, or try a budgeting app.

3. Compare your estimates to what you actually spent. You might be surprised—some things cost way more (or less) than you thought!

4. See if you’re managing within your allowance. If you often run out of money before the month ends, it's time to adjust your spending. Budgeting helps you figure out where you can cut back without missing out on the fun.

Needs vs. Wants: Be Honest

It’s important to know the difference between what you need and what you want.

For example:

Buying a coffee or bubble tea every day might feel like a small treat, but switching to once a week could save you thousands of rupees every year.

Small changes can lead to big savings.

Let’s Talk Numbers

Here’s a quick example to show how small expenses add up over time:

• Coffee/Drinks 4 times a week @ ₹200 = ₹800/week = ₹41,600/year

• Snacks 3 times a week @ ₹150 = ₹450/week = ₹23,400/year

• Weekend hangouts @ ₹1,000/weekend = ₹52,000/year

That’s over ₹1.1 lakh a year! In four years, that’s enough to buy a decent second-hand car or take a dream trip abroad.

Keep Your Budget Flexible

Your budget isn’t set in stone. It should grow with you. Maybe one month you need to spend more on school project materials and less on outings. Or maybe you’re saving up for a birthday gift.

Keep checking in and adjusting things as needed.

Apps can make this super easy. Many budgeting apps link to your account (if you have one) and automatically track your spending. Or, you can just use your Notes app or a physical notebook—whatever works best for you.

First Steps: Set Your Money Goals

Before you even build your budget, ask yourself:

What do I want to save for? What’s really important to me right now?

Write your goals down. This makes it easier to stay on track and avoid impulse buys.

If you like writing things down, try using a simple printable budget sheet. Prefer your phone? There are plenty of free budgeting apps to explore—find one that fits your style.

Final Thought

Budgeting isn’t about restricting yourself—it’s about being in control of your money. And the earlier you start, the better.

Even small steps now will pay off big time later.

Got questions? Reply to this post or reach out on the forum!