Latoya Campbell, Outlook Youth Writer

"My aunt gave me a few thousand dollars some time ago. Naturally, I did what most would; I splurged - bought everything that caught my fancy," said Katherine Daleyé. "I didn't realise how fast my money was going until I was at the front of the line at a store one day and ready to pay for a textbook that I needed. When I looked in my purse, all I saw was a hundred dollar note and a couple of red cents! Not only was I set back in class but also I got a long lecture about money management. Wish I'd heard that years ago!"

Why Budget?

Like Katherine, we've all had to learn the hard way where money management is concerned. Some young people view it as something that only the 'not too well off' do. However, for others, creating a budget is an ideal practice that they have benefited from in a significant way.

Budgeting has many advantages.

It's very important to have an idea of how much money you usually spend over a period of time and decide how you will use it.

By creating a budget you're more likely to 'control your money and not let it control you!'

Budgeting prevents you from running into debt that you will definitely have to repay with interest.

You'll be better able to meet saving goals and be prepared for emergencies.

Outlook Youth gathered a few tips that will be sure to help you create a proper budget and hopefully stick to it.

Prioritise

Define wants versus needs - wants are often luxuries dressed up as necessities.

Keep records of how much you spend on a monthly or weekly basis so that you will have a better idea of your spending habits.

Write down a list of things you usually spend money on: lunch, taxi or bus fare, school supplies, phone cards, beauty care products, savings, entertainment, etc.

Be sensible - think ahead.

Tips for sticking to your budget

If you're a compulsive spender, try not to put yourself in situations where you'll be tempted to spend money.

When shopping, take a list with you. That way you will be less likely to buy items that you don't want.

Don't be tempted by your friends' habits.

Practice makes perfect! The hardest part of budgeting is actually doing it. With the right attitude and patience it is achievable.

For more information, visit:

http://money.cnn.com/magazines/moneymag/money101/lesson2/

www.thefrugalshopper.com/articles/student.html

www.uswitch.com/DebtAdviceCentre/Student-Budgeting.html

Your Take

Shaniek

What do you like the most about budgeting?

"When you budget you get a sense of control and security. It makes you less frustrated. You are able to enjoy yourself within a financial constraint, and that prevents a lot of stress."

- Shaniek Swak - 21

Why do you think budgeting fails?

Shawn"It's hard to follow a budget at times because you feel obliged to spend more money than you plan to, simply because you have it."

- Shawn Robinson - 21

What do you think is the best way of sticking to a budget?

Cole

"Begin with a budget that you can follow. Be realistic; assume that it caters to your basic needs. As you get accustomed to it, you can make it more rigid."

- Colé Brown - 20

For the most interesting teen issues and styles, get your copy of Youthlink magazine on newsstands on Tuesday.