Making Choices With Limited Money
You can't usually buy everything you want, so you get to decide what matters most.
Every dollar can only be used once
This isn't a lesson about not spending money — it's about understanding that whatever you have is what you have. Once you spend a dollar, it's spent.
Lots of choices — but only $5 to make them with.
Spend, Save & Give
Spend
Money you can use now.
Save
Money you keep for a future goal.
Give
Money you choose to give to help others.
You decide how to divide the money you actually have. There's no single correct split — a $2/$2/$1 example is just that, an example.
A few real scenarios
1. You have $10
You want a $4 treat, a $7 toy, and you're saving towards $30 headphones. You can't do all three — what could you choose?
2. You have $5
You want something that costs $4. You could buy it now, or keep the $5 and keep saving. What might you choose?
3. You receive $5 pocket money
How might you divide it between Spend, Save and Give?
None of these have one correct answer — the point is thinking about choices and their consequences.
Choices connect to goals
If you spend money today, you might take longer to reach your savings goal. If you save today, you might have to wait before buying something you want now. That's the trade-off from earlier lessons, showing up again here. And if money's limited, knowing whether something is a need or a want can help you decide what to prioritise first.
Give your child $10 in real $1 coins. Present a few choices, and ask them to physically divide the coins between Spend, Save and Give. Then ask:
- Why did you choose that?
- What did you decide not to buy?
- How much will you have saved?
- How long might it take to reach your goal?
This works best with real, limited money your child already has — pocket money or a small shopping budget is plenty. There's no need to invent an artificial situation.
Choices, not restrictions
Money gives us choices. Having a limited amount just means deciding which choices matter most — it's not about deprivation.
For older children: this often comes down to prioritising — deciding what needs to happen first, what's most important, what can wait, and what you can actually afford.
You've covered spending, saving, giving, goals, trade-offs and patience
Next up: once you understand how to make choices with the money you have, the next question is how people earn money in the first place — Earning Money is next.