You're going to learn how to tell the difference between things you need and things you want, and how to plan your money with a simple budget.
What is a need and what is a want?
- Needs are things you must have to live, stay healthy, and be safe (food, a place to live, clothes, medicines).
- Wants are things that are nice to have but not necessary right now (toys, video games, snacks you could live without).
Budgeting basics for kids
A budget is a plan for how you will use your money. For kids, it can be a simple plan for allowance, gifts, or chore money.
- Write down how much money you have coming in (allowance, gifts).
- List your needs first (food, clothing, school supplies).
- Decide how much you want to save for a goal (a new toy, a book, or a bike).
- Choose what you will buy now and what you will save for later.
Saving for a goal
Saving helps you reach a goal faster. Start with a small goal and a jar or envelope to keep your money safe.
Quick practice you can try at home
Activity: Look at three items you want to buy. Decide if each is a need or a want, and remember your plan: will you buy it now or save?
- Item 1: Lunch box
- Item 2: New video game
- Item 3: Extra snack
Tips to remember: always start with needs, set a savings goal, and review your plan every week.