Intentional Spending
Written by: Nouchi W.
How many times have you spent money on something you forgot about two weeks after you bought it? Maybe it’s that snack you bought after school, or something random from an impromptu visit to KwikTrip. Whatever it is, you hadn’t intended on buying it in the first place. Think about the last time you went out and spent a ton of money. Was it eating out with a group of friends? Shopping at the mall? Buying a ton of things you found online? Did you actually end up using what you bought?
According to ZipRecruiter, the average teen in Wisconsin gets paid fourteen dollars an hour. However, a lot of teenagers get paid less than that. Most of the people I know have an hourly pay range from 8-12 dollars an hour. So let’s say you’re working for $12 an hour and work an average of twenty hours a week. Your weekly income is $240.00. According to the National Consumer League, teens spend about $104 a week. That’s almost 50% of your average income.
Where is all of that money going? Well, a lot of it goes to food, clothes, or general shopping. Most of these purchases are wants, and not needs. When getting your first job, it’s liberating knowing what you’ve gained is what you’ve worked for, and it’s all yours to spend on whatever you want. But when that feeling fades, a habit of bad spending starts sucking up everything you’re earning, and you may not even realize it.
Intentional spending is knowing where all of your money is going so that you can make better, informed decisions on what to do with what you have. So how do you start?
The basics to intentional spending isn’t hard at all. First, you need to start recording everything you spend. Whether that’s writing it all down, logging it in your phone, or checking your account every day, you need to be able to remember what you’re spending. When you’re first doing this, don’t worry about restricting what you buy. You just want to know what your average spending is and what it’s on. That way, you can better understand your spending habits.
After you’ve taken some time to better understand yourself, it’s time to start thinking about what you want to do with your money. You know how much you make, you know what you’re spending it on, and now you can figure out what you want to spend it on. You can save some money for later, invest it, spend it, give it to charity, and more. The most important thing is that you know where every penny is going.
While doing this, you’re going to want to start setting goals. For instance, saving up for that car you’ve been eyeing for awhile. Or maybe you want to go on a trip with your friends. College is a great option too. Whatever it is that you want in the future, it’s good to set a date or time you’d like to have something saved up by. If your trip’s in July, make sure you’ve got everything ready in June. And if you want to invest in stocks or give some to charity, that’s A-okay too. Just make sure you know what you’re doing and who you’re giving money to.
Once you have your goals set, it’s time to start budgeting. When starting to budget, make sure you take into consideration your spending habits! If you make it too different than what you’re used to, you’re likely not going to be able to do it. The whole point here is to be realistic, so don’t start daydreaming about all the things you’ll do once you start budgeting. Remember, being intentional is the key here. The template below may be able to help you get started.
Now that you’ve got a budget and know what you want to do, make sure you don’t become influenced by others. Ads are not your friend, and most of the time you can live without the amazing thing they’re trying to sell you. Talk to your friends and family about your new budget, and ask them to understand and try to help you keep to your goal. And if they don’t want to help, remember that your money is for you to spend. Not anyone else.
If there’s one thing you take away from this, it’s that your spending habits should be your decision. You make the choice every time to buy anything. It’s your choice to save, to invest, to spend. Make sure you’re intentional about it.
Works Cited
Grossman, Author Amanda L. “13 Kid's Budget Worksheets (Plus Sample Budget Template for Teenagers).” Money Prodigy, 18 Feb. 2021, www.moneyprodigy.com/kids-budget-worksheets/.
“How to Be Intentional with Your Money: PT Money.” Part-Time Money®, 20 Oct. 2020, ptmoney.com/being-intentional-10-things-that-bring-success-in-personal-finance/.
Law, Lexington. “Teen Spending Habits in 2021.” Lexington Law, 6 Apr. 2021, www.lexingtonlaw.com/blog/credit-cards/teen-spending-habits.html.
Liv. “How to Create a Spending Log in Your Bullet Journal.” Funding Cloud Nine, 12 Oct. 2019, www.fundingcloudnine.com/spending-log-bullet-journal/.
Soard, Caitlin. “How Much Do American Teenagers Spend on Clothes?” LoveToKnow, LoveToKnow Corp, teens.lovetoknow.com/teen-fashion/how-much-do-american-teenagers-spend-clothes.
“Teens Annual Salary in Wisconsin ($28,238 Avg: Apr 2021).” ZipRecruiter, www.ziprecruiter.com/Salaries/Teens-Salary--in-Wisconsin.
Intentional spending really is so important. I can relate very closely with this article in that I spend a lot of money on things that I don't necessarily need. I find myself swiping my card too easily because I think to myself "I worked this week so I can have this." While this may be true I can't help but wonder what I could have done with some of the money that I've spent pointlessly at Walmart or target just for the sake of spending money. Understanding where each penny goes is extremely important and like you were saying, with budgeting this doesn't have to be extremely difficult.
ReplyDeleteI have a bad habit of spending money needlessly so learning about ways to stop myself from spending so much money is very helpful.
ReplyDeleteI thought this was super helpful. I can be very impulsive with my money and even though I try my best to not go overboard sometimes I spend more than I intend. I think I'll keep this in mind and incorporate some of these tips in my day to day life.
ReplyDeleteI really never thought about what i buy with my money. i usually just buy it and forget about it but now that you opened me up it it i should start limiting myself to what i buy
ReplyDeleteNouchi- well done! Your post spoke to me -- it really called me out -- for so many reasons. As someone who only needs to buy wants and not needs, I tend to over-spend and waste money on clothes, food, etc. that I regret later. You gave a lot of tips and tricks, including a step-by-step guide to help me be more intentional. Thanks for helping me, and thanks for writing such a good post!
ReplyDeleteThis post was super helpful in helping me realize how little attention most teens, like myself, pay to the money we spend. Some of the strategies like creating a monthly budget or creating a spending log are things that I can incorporate into my life in an easy way, that can later help me out in the future. I feel like being conscious of where you spend your hard-earned money is more important than making sure you save most of it, because in the end you will be more rewarded by that than stressing over your savings.
ReplyDeleteAshley Anderson - This blog was extremely insightful! I agree that it is so important to keep track of everything you spent your money on (especially when using a credit card for purchases as well). My parents actually taught me to keep a log (like you mentioned in your post) of everything you spent your money on before receiving your credit card statement. Not only is this important to keep track of what you have spent, but it also ensures that the shop you spend your money at is calculating your purchases correctly. I think it was a great idea to have teenagers as the main focal point in your blog because teenagers are able to acknowledge how crucial it is to know where and how much money they are spending.
ReplyDeleteI really enjoyed your piece and I liked how you compared the average income that a teenager makes, to the amount of that money that they usually spend per week, and it’s crazy that it is about 50%. Personally I don’t have a job and I rely on my spending through gift cards and money that I get on holidays or my birthday, so it requires me to be a lot more stingy with my money and focusing on the needs instead of what I want. While it would probably be best for me to get a job and get some experience, this has also taught me how to manage my money better. With being a teenager, do you think that teens that are able to drive will spend more money than teens who don’t?
ReplyDeleteI've been telling myself I need to start recording my spending but I just seem to never get to it. This was a good reminder! On a different note, I like buying things used, both for the cheaper prices and to limit my carbon footprint. This is something that has really helped my budget. By buying some things used, I can get more stuff with the same amount of money than I could buying things used. I intentionally do this so I can limit my spending on my wants.
ReplyDeleteI loved reading your blog! I thought it was very helpful for us teenagers who tend to recklessly spend our money. I personally know how difficult it is to not spend money on things that you don’t need when influenced by other factors. Knowing what you spend your money on and creating a budget can be super beneficial. This is also a great way to prepare for the future when you have more money and payments to worry about. I loved your topic! Great job!(Ally Longden)
ReplyDeleteThank you Nouchi! I think that its extremely important to keep track of what youre spending so you can help set a budget for yourself. If you use online banking it tracks your purchase on just your card. You made me realize that its good to keep track of the actual cash youre spending too. I do have a job so it would be beneficial if I start saving, and your blog made me realize what I should be buying and what I shouldnt.
ReplyDeleteYes! I relate to this a lot because sometimes when I have some money on me or going out with friends, I end up spending on stuff that I tend to forget about. I never really thought about writing my purchases down. I’ve been trying to get into journaling and since I’m going to be dealing with financial things now, this is a great opportunity to start. I think that’s a great way to get myself organized and not confuse myself with where all my money went when I impulsively buy things online. Great job, Nouchi!
ReplyDeleteI really loved this blog post! Great job Nouchi! I think this was a really good topic for a blog directed towards teenagers. It was very helpful and thank you for giving tips on how we can intentionally spend( keeping a log,creating a budget, etc.). I think its good to start budgeting and spending intentionally now when we're young so it becomes a habit in the future and not get habits like buying more wants than needs.
ReplyDeleteI really like how you formatted this writing piece, as you made it almost a step by step on how to practice intentional spending and stop making these irrational purchases. I found it very surprising that the average teen in Wisconsin makes $14 an hour, because as you mentioned, most people I know make anywhere form $8-12 an hour, but I suppose it could make more sense as 18-19 year olds are teens but likely make a high income than those who may be working at 15 or 16. I think intentional spending is extremely important and a great topic to choose to address to teenagers, as we are the most likely age group to not practice this and make irrational decisions.
ReplyDeleteI completely agree, especially with the impromptu spending at Kwik Trip. However, I was also surprised by the average teen making $14 an hour. It seems understandable that the average teen in the nation would make $14, but as a state that doesn't cost much to live in, $14 is surprisingly high.
ReplyDeleteI think budgeting is very important, as you never know when you're going to need a lot of money at one time to cover a surprise expense.
ReplyDeleteThis is really helpful! I feel like balancing what to buy and when to save money is difficult, and these tips will be useful!
ReplyDeleteI think this is really helpful for any audience to know. Budgeting is important when trying to save up from big things like a car or mortgage, but a lot of people struggle to not impulsively buy things -- especially high schoolers as I've noticed. You make a good point by bringing up how it'll be difficult to keep to budgeting if a person cuts off all of their usual expenses. I think you budgeting sheet will be especially helpful when trying budgeting for the person time. Great job overall!
ReplyDeleteThis was so weird to think about even after just reading the first paragraph. I really never realize now much unintentional spending I actually do. I could walk into a store with absolutely no money but still walk out of the store with something. On the other hand, it’s really interesting to think about how much intentional spending I do as well. For example, every month I have to pay for insurance and more money to pay off my car. With that being said, I know how much money I need to have every month to pay off my expenses. You did a great job, Nouchi!!!
ReplyDeleteWow you really got me thinking and I it scares me because for a few minutes I forgot when was the last time I spend money even though it was less then a week ago. It also scares me because looking back you forget how many times you buy small things like get fast food. I found this very useful because this is something I should be doing. I thing if I kept a log of everything I bought like you suggest I would see I am spending to much money on worthless stuff that is not benefiting me and then actually changing my money habits. I feel like the only reason the average teen gets pain $14 is because of 18 and 19 year olds working full time after high school. I feel like if you would take average salary of just high schoolers it would be closer to $11 or $12.
ReplyDeleteI am so glad I read your post. It really got me thinking about how many little, worthless things I'm spending my money on. It's very eye opening to think about how much money I've wasted on things that I don't even use anymore. Keeping a log of everything I spend my money on is definitely going to be something I do from now on. I think that will help me realize how much money I'm really wasting and help me to limit my spending as much as I can. You did a very nice job explaining what unintentional spending is and giving solutions to this. Nice work!
ReplyDeleteI really never thought about what i buy with my money. i usually just buy it and forget about it but now that you opened me up it it i should start limiting myself to what i buy
ReplyDelete