Difficulty: Explorer (Level 1)
Budgeting is a very important tool to take care of your money. Even if you don’t have a lot of money now, learning how to spend wisely will help you in the future.
Many people make a monthly budget to follow. But you can also budget for an event or something special you’d like to buy, so you know how to spend your money.
It’s important to make a budget before these things happen instead of trying to figure out where all your money went later!
Aim to spend half of your income on things you need. This could include food, transport and school supplies.
About 30 per cent of your money can go towards the things you want, like buying toys or more expensive snacks. These are not needed, but they are fun!
Then, you should try to put 10 to 20 per cent of your money in savings. You could put it in a piggy bank or an account with your parents.
Budgeting can seem scary, but we’ve found easy ways to make it work!
Learn to make a budget
Materials
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a parent or other relative to help you
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pen and paper
Instructions
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Fold your paper in half from left to right. Then, fold it again in half from top to bottom.
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Label the top left box “Income”. Write down all the money that you get in a year – during your birthday, on holidays like Lunar New Year or for doing chores.
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Next, figure out your costs. Maybe you have to buy lunch for yourself on certain days, or you buy your own school supplies. If your parents buy your clothes and supplies for you, ask them how much these items usually cost every year.
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Label the bottom left box as “Need” and the bottom right box as “Want”. Then, add your costs. “Need” includes things like school supplies, food and necessary clothes. “Want” includes things like candy, toys, games or new clothes that aren’t necessary.
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With the help of a parent, decide how much of your money should go to your “Need” section and how much goes into the “Want” section.
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Finally, write “Savings” in the top right box. Decide how much money should go into savings. Try to save at least 10 per cent of your income – calculate that by dividing by 10. Now, you can try your best not to spend beyond your budget each month.
Make your own spend, save and give jars
Materials
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three medium-sized mason jars
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tape or glue
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permanent markers
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stickers, ribbons, or other decorating supplies
Instructions
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Take the three jars. With a permanent marker, write “save” on one jar, “spend” on another jar, and “give” on the final jar. Make sure to write them in big letters. The “save” jar is for saving money, the “spend” jar is what you can spend on yourself, and the “give” jar is for donating.
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Now, you can decorate the jars however you want! A parent can help you use glue or tape to stick the decorations to your jars – try ribbons, googly eyes, cotton balls, tissue paper and more.
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Once you finish decorating the jars, let the glue dry. Then, leave the three jars somewhere noticeable. You could put them in your kitchen or next to your bed. Whenever you receive money, split it up between the three jars.
