By Amrita Ramabadran | March 20, 2024 | 8 min read
The Big Picture: Why This Actually Matters
Look, I get it. When you’re in high school, thinking about budgets and savings feels like worrying about stuff that’s way in the future. But here’s the thing—the habits you build now literally shape your entire financial future.
Think of it like this: learning about money is like learning to drive before you get your license. Sure, you could figure it out later, but wouldn’t it be way less stressful to already know what you’re doing?
Lesson 1: Understand Where Your Money Goes
This was my first real “aha” moment. I thought I was managing my money responsibly, but once I tracked every dollar I spent for a month, I was shocked—especially by how quickly the money from my figure skating coaching sessions disappeared.
I spent $24 on boba tea, grabbing one every week (so good!), $36 on a Jellycat plush—which I can’t even find anymore—$21 on a heatless hair curling set, and another $19 on a game I only played once… That’s over $100 on stuff I barely even remember buying.
Here’s what worked for me:
- I started using my phone’s notes app to write down EVERY purchase for 30 days
- At the end of the month, I added it all up by category (food, entertainment, clothes, etc.)
- I nearly fell off my chair when I saw I was spending $80/month on fast food
You don’t need a fancy app (though there are free ones like Mint if you want). Just track it somehow. You can’t manage what you don’t measure.
Lesson 2: The 50/30/20 Rule (But Make It Make Sense)
Adults love throwing around budgeting rules, but this one actually makes sense once you break it down:
- 50% for Needs – stuff you HAVE to pay for (if you have bills, rent, phone, etc.)
- 30% for Wants – fun stuff (movies, eating out, that new game)
- 20% for Savings – your future self will thank you
Now, as a high schooler, your “needs” might be pretty small if you’re living at home. That’s actually awesome! It means you can flip this around. When I got my first paycheck, here’s what I did:
- 50% to Savings – I was putting away half of everything I earned
- 30% for Wants – guilt-free spending money
- 20% for Future Big Purchases – saving for a car, college expenses, etc.
The exact percentages don’t matter as much as having a system. Pick something that works for YOUR life and stick with it.
Lesson 3: Pay Yourself First (This Changed Everything)
This is hands-down the best money advice I’ve ever gotten, and it’s super simple: when you get paid, save FIRST, then spend what’s left.
Most people do it backward—they spend money on whatever, then save what’s left over at the end of the month. Spoiler alert: there’s usually nothing left.
Here’s what I do now:
- Get paid on Friday
- Immediately transfer my savings amount to my savings account
- THEN I can spend the rest guilt-free
It’s like the money I saved never existed in my checking account. I can’t accidentally spend it on impulse buys.
Lesson 4: The Three Savings Buckets
Not all savings are the same! I learned to split my savings into three different goals:
1. Emergency Fund (Start here!) This is for unexpected stuff—your phone breaks, you need to fix your bike, whatever. I aim to keep $500 in this fund. It sounds like a lot, but trust me, emergencies always cost more than you think.
2. Short-term Savings (3-12 months out) Saving for concert tickets? New laptop? Summer trip? This is where that money goes. I love having this because I can buy things I want WITHOUT feeling guilty or going broke.
3. Long-term Savings (1+ years out) College fund, first car, moving out someday—the big stuff. Even if you can only put $20/month here, it adds up. I started with $10/month and now I’m up to $100/month. Start small, build up.
Lesson 5: Debt is NOT Free Money
Real talk: I watched a friend get her first credit card and max it out in like two weeks buying clothes and makeup. She thought “I’ll just pay it back later.”
Three months later, she owed $800 and was paying $35/month in interest charges ALONE. That’s $35 going to… nothing. Just the cost of borrowing money.
Here’s what I learned:
- Credit cards aren’t evil, but they’re not free money either
- If you can’t afford it with cash, you can’t afford it with credit
- Interest is basically a penalty for borrowing money
- Only use credit if you can pay it off IN FULL every month
I don’t have a credit card yet, and honestly, I’m okay with that. When I do get one, I’ll use it for small purchases I was going to make anyway (like gas) and pay it off immediately.
Lesson 6: Needs vs. Wants (It’s Trickier Than You Think)
This one seems obvious until you actually try it. Here’s a trick that helped me:
Before buying anything over $20, I ask myself:
- Do I need this to survive or fulfill a responsibility? (Need)
- Will I still want this in a week? (Want, but maybe worth it)
- Am I just bored or emotional right now? (Probably don’t buy it)
I started using the “72-hour rule” for wants over $50. I wait three days, and if I still want it, I consider buying it. You’d be surprised how many things you forget about after 72 hours!
Lesson 7: Make Your Money Work FOR You
Here’s something I didn’t know: just keeping money in a regular savings account means you’re actually LOSING money over time because of inflation. Wild, right?
I learned that:
- Regular savings accounts are fine for emergency funds (you need quick access)
- High-yield savings accounts pay you more interest (I switched and get 4% instead of 0.01%)
- Investing is for long-term money you won’t need for 5+ years
I’m still learning about investing, but I opened a high-yield savings account online and it was super easy. Now my savings actually grows a little bit every month.
What I Wish Someone Had Told Me on Day One
If I could go back and tell my younger self just a few things, it would be:
- Start now. Even if it’s just $5. The habit matters more than the amount.
- It’s okay to make mistakes. I definitely have. You’ll probably overspend sometimes. Learn and move on.
- Your money = your choices. Having savings gives you OPTIONS. Want to quit a job you hate? Go on a trip? Help a friend? Money gives you freedom to choose.
- Talk about money. It’s not rude or taboo. Ask questions. Learn from others. Share what you learn.
- You’re not behind. If you’re reading this and just starting, you’re already ahead of most people our age.
My Challenge to You
Here’s what I want you to do this week:
- Track every dollar you spend for 7 days – just write it down
- Calculate how much money you have right now – checking, savings, cash, everything
- Set ONE financial goal – doesn’t matter how small
- Open a savings account if you don’t have one – even if you start with $10
That’s it. Four simple things that will put you ahead of 90% of people your age.
Final Thoughts
Learning about money doesn’t have to be complicated or boring. It’s literally just learning to manage something you’re going to deal with for your entire life.
Every single adult I’ve talked to says the same thing: “I wish I’d learned this earlier.” Well, we ARE learning it earlier. And that’s going to make a huge difference.
So yeah, that’s Money 101 from someone who’s still figuring it out too. I’m not a financial expert—I’m just a high schooler who decided to actually learn this stuff instead of waiting for someone to teach me.
And honestly? It’s been kind of empowering.
Your turn. What’s one money thing you wish you understood better? Drop a comment below or reach out—let’s figure this out together.
About the Author: Amrita is a high school junior who started Every Penny Matters after realizing how little financial education was available to students. When she’s not writing about money, she’s probably coaching at the Cupertino Ice Rink, studying for AP tests, or playing favorite songs on her Piano.
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