Budgeting
What is a budget?
A plan of how you will spend your money.
What is saving?
Setting money aside for the future.
You want to buy supplies for a school project. How can you plan so you don’t run out of money?
Make a list of the supplies, check prices, and make sure you have enough money before buying.
If you spend all your money on candy, what might happen when you want to buy something more important later?
You won’t have money for the important thing.
Why is it important to plan how you spend your allowance instead of buying things all at once?
Planning helps make sure you have money for the things you really need or really want.
Why is it a good idea to save some money instead of spending it all right away?
Saving helps you have money for important things later.
If you have $15 and want to go to a movie ($7) and buy a snack ($5), what should you do first?
Buy the movie ticket first ($7), then see if you have enough left for the snack ($5). You will have $3 left.
How can keeping track of your allowance or money help you make better choices?
You know how much you have and can decide what to buy, save, or share.
Your friend wants to buy candy every day, but you only have $5. How can you politely explain why you can’t buy it every day?
You could say, “I like candy too, but I only have $5, so I need to save some money.”
If you save $2 every week, how much will you have after 5 weeks?
$2 × 5 = $10
Your friend forgot to bring lunch money and asks you for some. How could planning help you avoid this problem?
Bring a little extra money for emergencies.
If you earned money by doing chores, how could you decide how much to save, spend, and share?
You could divide it, like 50% spend, 30% save, 20% share.