Living on minimum wage is hard, especially with rent, food, and bills going up. But with a few smart money habits, you can make the most of what you earn—even if your paycheck feels small. If you’re Gen Z and working a minimum wage job, this guide is for you.

Here’s how to create a simple budget that actually works.

1. Know Your Real Income
Start by figuring out how much money you bring home each month after taxes. This is called your “net income.” If you earn $15 an hour and work 30 hours a week, that’s about $1,800 a month before taxes. After taxes, it may be closer to $1,500. Use a free paycheck calculator online to help you figure out your exact number.

2. Track Every Dollar You Spend
You can’t manage your money if you don’t know where it’s going. Use a free app like Mint, EveryDollar, or Goodbudget—or just use your phone’s notes app. Write down what you spend on food, rent, gas, subscriptions, and everything else. Tracking helps you see what’s worth keeping and what you can cut.

3. Focus on Your Needs First
When you’re on a tight budget, paying for the basics is key. Start with your essentials:

• Rent or housing
• Food and groceries
• Transportation
• Utilities like electricity, water, and internet
• Phone bill

Try using a simple rule like 70-20-10:

• 70% goes to needs
• 20% goes to savings or paying down debt
• 10% is for fun or personal spending

This may look different depending on where you live or your situation, but it’s a good place to start.

4. Cut Costs Where You Can
Look for small ways to save money:

• Live with roommates or family if possible
• Cook at home instead of eating out
• Walk or bike instead of driving
• Use public transit or carpool
• Switch to a cheaper phone plan or Wi-Fi provider
• Cancel subscriptions you don’t use

Every $10 you save adds up over time.

5. Build a Small Emergency Fund
Even if you can only save $5 or $10 a week, it helps. Try to build up to $500 so you’re covered if your car breaks down or you lose hours at work. Keep your emergency money in a separate savings account so you’re not tempted to spend it.

6. Avoid Common Budget Mistakes

• Don’t ignore small charges like app subscriptions or fast food—they add up fast.
• Don’t treat credit cards like extra income. If you use one, pay it off each month.
• Don’t give up if you go over budget. Adjust and keep going.

Budgeting is a habit—it takes practice.

7. Try to Earn More
If your paycheck isn’t enough, look for ways to bring in extra money.

• Offer freelance services like tutoring, graphic design, or writing
• Deliver for apps like Uber Eats or DoorDash
• Sell clothes or items you don’t use anymore
• Look for part-time gigs that offer better pay or tips
• Pick up new skills online to qualify for better jobs

Even an extra $100 a month can make a big difference.

8. Use Free Help and Resources

• Look into SNAP (food stamps), utility assistance, and local support programs
• Visit a local nonprofit for help with housing, food, or job training
• Follow personal finance YouTubers or TikTok creators who share tips for Gen Z
• Use free online tools to build your money skills

Sage Final Thoughts
Living on minimum wage isn’t easy, but you’re not alone. More than 40% of Gen Z workers earn less than $15 an hour (Pew Research, 2024). That’s a challenge—but also a chance to build smart habits early.

The key is to stay aware, make small changes, and keep learning. Start with one step today—track your spending or set a savings goal—and keep going from there. You’ve got this.