📋 MANAGING MONEY · LESSON 1

What Is a Budget?

A budget is a plan for your money before you spend it.

Simpler than it sounds

A budget doesn't need to be complicated

Example: You have $10. You decide: $4 Spend, $4 Save, $2 Give. That's a simple budget.

One real family's example

The Spend, Save, Give plan

One MyKidsMoney family's $5 weekly pocket money is planned out before it's spent:

🛍️
Spend
$2
🐖
Save
$2
💛
Give
$1

This is one family's system, not a rule everyone follows — the important part is having a plan at all, not this exact split.

Making the plan visible

Physical money first

Using $1 coins, a child can physically divide their money into jars before spending any of it. Seeing the coins split between Spend, Save and Give makes the plan real, instead of just an idea in someone's head.

Why bother?

What a budget helps with

A budget can help you know how much money you have, decide what's important, make sure you have money for your goals, and avoid accidentally spending everything.

Not set in stone

A budget can change

A budget is a plan, not a prison. If circumstances change — a bigger goal comes up, or something unexpected happens — you can change the plan too.

Try it yourself

Make your own $10 plan

You have $10 to split between Spend, Save and Give. What would you choose, and why?

There's no single correct answer — the important part is thinking it through before you spend, and being able to explain what made you choose those amounts.

For parents

Let your child make simple money plans themselves. Don't focus on getting the "perfect" split — the goal is learning to think before spending, not landing on a specific ratio.

Keep going

Where to next

More on what to do with each part of a budget.

Ready to keep learning?

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