Develop a generous, efficient budget

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Learn about the 10-10-80 budget!

Gayle Hesser, Staff Writer

Creating a budget plan can be very important in many cases. For teens who are getting their first job or planning for college, it is necessary to learn how to manage money, to set themselves up for upcoming events, and learn how to organize time and money. People often follow a budget plan in order to keep everything in check.

The most common, and most effective budget for people who are saving for the future is called the, 10-10-80 Budget.

This budget plan involves using a system where you involve and track your spending. Setting up this budget when money first becomes accessible prepares for a lifetime of wise budgeting. People on the plan use about 80% of their earnings, and set aside about 10% for charity, or taxes. The remaining 10% is for savings, either in the bank or into other investment accounts (10-10-80).

While starting this plan early is recommended, sometimes it is necessary to pay off debts first. Financial planners recommend those in that situation take another 10% from regular earnings and cut down outstanding debts. This might mean a larger car payment or paying off an iPhone with additional cash.

Many budget plans vary, with percentages of earnings and given to charity are different for each person, but for students who are just starting out financially, these are the rules and practices often associated with a 10-10-80 Budget plan. Learning these skills at a young age makes it easier to save, and to give, as paychecks start getting larger. And for seniors, it is a good way to get money for the expenses that seem to increase as the year progresses.