Budgeting and Saving
Income
This is the money you get. It might come from an allowance, birthday gifts, or doing chores. Imagine you get $10 a week for doing chores
1.
Expenses:
These are the things you spend money on. It could be snacks, toys, or saving up for a bigger item like a new game. For example, you might spend $2 on candy each week.
2.
Savings:
This is the money you keep aside to use later. It's good to save some money for bigger things you might want in the future or for emergencies. Maybe you save $3 every week.
3.
50% needs
30% saving & invest
20% Wants
30%
Budget Plan:
To make a budget plan, you write down all your income and then decide how you will spend or save it. Here’s an example:
Income: $10
Expenses (Outgoings):
Candy: $2
Saving: $3
Leftover for other things (Net Income): $5
at the end of July, you are left with 45$, which you can invest into a savings account and earn interest to earn more
Sticking to the Budget:
Once you make your budget plan, you try to follow it. If you decide to spend only $2 on candy, you shouldn’t spend more, or you might not have enough money to save or buy other things.
Adjusting the Budget:
Sometimes things change, and you might need to adjust your budget. If you want to save more, you might decide to spend less on candy.
Example:
Imagine you want to buy a toy that costs $20, and you want to save up for it. If you save $3 every week, you can figure out how many weeks it will take to save enough.
$20 toy ÷ $3 saved per week = about 7 weeks to save enough money
By planning and sticking to your budget, you can make sure you have enough money for the things you need and want.