After getting hacked by a fraudulent online clothing website, junior Emma Firsel decided to shop online less frequently to prevent her money from being stolen again.

“I got hacked and I got thousands of dollars stolen from my account,” said Firsel.“So now, it’s honestly about the decision, ‘Do you want to spend your money on this?’ Or, ‘Is this a good way to spend your money?’”

Oncehermoneywasreturned,Firselstartedthinkingmore about her purchases, budgeting where and how much she would spend online, she said.

Budgeting is the practice of setting restrictions on areas of spending to manage expenses and limit overspending.

“[Budgeting is] simpler as a teenager,” said accredited financial counselor Kristy Gower. “The typical teenager is living under their [parent or guardian’s] roof and kind of has those basic needs met.”  

According to financial coach Kristen Ricupero, many teenagers neverlearn to manage their spending because they are using money from their parents’ account without facing the consequences. 

“Kidsare tooling around with their parents’ credit cards, and they have no idea how much [money] they’re spending or how that is adding up or what that interest might be causing,” Ricupero said.

Financial freedom is the ability to spend your own money comfortably. 

According to Firsel, having a job has helped her understand the value of financial freedom.

 “I would honestly say that, because it’s my own money, I feel better about my purchases,” Firsel said.

Financial literacy, or education on understanding and using financial skills like saving and wealth planning, is necessary knowledge to have when budgeting.

According to Gower, students tend to lack financial literacy, which can result in poor spending habits in the future.

 “I’m seeing the ramifications in adult clients of having that paycheck-to-paycheck mentality,” Gower said.

The phrase living paycheck-to-paycheck refers to having little to no  leftover money after covering typical expenses.

According to Ricupero, budgeting, like any other skill, takes practice.

“Start being aware of money and how quickly it can add up,” said Ricupero. “It’s like anything else. If you exercise at a young age, you’re probably going to exercise. If you can make your bed every morning, you’re probably going to make your bed.”

“There’s a lot ofpressureto have certainclothesortodocertain things,” said Ricupero. “And a lot of times, teens spend money on things they don’t really need.”

According to Firsel, social media makes her feel as though she needs to spend more money.

“I think especially now in social media, there’s people [whose] jobs are to influence you to buy certain things, so I’ve definitely had my full share,” said Firsel. “I’ve spent money on the dumbest things, and it’s really gotten back to me.” 

Firsel has adjusted her spending by being conscious of future expenses.

“Just take it little by little at a time,” said Firsel. “If you know you’re going out with friends at the end of the week, just be conscious that you might be spending more on that day, and then be responsible with it.”

Managing her own money has taught her how to be conscious, safe and responsible, Firsel said.

“It’s all about decisions and choices that you want to make in the long run,”said Firsel. “A lot of people think of budgeting as a long period of time, but I think of it month-by-month, week-by-week. Just dividing it into manageable periods of time.”