Teen budgeting in Kenya comes with unique challenges. With a high youth unemployment rate of around 39% for those aged 18 to 34, many young people either don’t have jobs or work in informal sectors with irregular income. Even if someone is employed, their earnings may not be consistent, making budgeting difficult.
Teen Budgeting in Kenya: Financial Literacy Gaps
Most teenagers don’t receive formal training on personal finance. Topics like budgeting, saving, or managing debt are rarely taught in schools. As a result, many teens grow up without the tools to handle money wisely.
Tracking Income and Expenses as a Teen in Kenya
Tracking your income and expenses may sound easy in theory, but in reality, it can be hard—especially when your spending is irregular or unplanned. Many people don’t realize how much they spend in a month until they take a closer look. The average monthly spending for a single person in Kenya is about KES 60,000 (roughly $478). This can put a lot of pressure on someone who’s trying to save or stick to a budget.
That’s why it helps to follow a simple, structured method like the 50/30/20 budgeting rule.
The 50/30/20 Rule
This rule breaks down your income into three categories:
50% – Needs:
This goes toward essential expenses like school fees and supplies, food, transport, and personal hygiene.
30% – Wants:
This covers non-essential but enjoyable things such as entertainment, social outings, trendy clothes, and hobbies.
20% – Savings and Future Goals:
This portion is saved or invested for future needs—whether it’s an emergency fund, school savings, or personal goals.
In conclusion, teen budgeting in Kenya is not easy, but with the right habits like tracking spending and using the 50/30/20 rule, young people can build strong financial foundations.
