Student Handout — Budgeting Basics (Week 10)
Take This Home
This handout summarizes what we learned in Week 10. Share it with your family!
What Is a Budget?
A budget is a plan for your money. It helps you decide where your money goes before you spend it.
A budget is not a punishment — it is a tool that puts you in control.
The Needs — Wants — Save Framework
Every time you get money, split it into three categories:
| Category | What It Means | Examples |
|---|---|---|
| Needs | Things you must have to be safe and healthy | Food, school supplies, medicine, clothing |
| Wants | Things you would like but can live without | Toys, games, candy, extra screen time |
| Save | Money you set aside for later | Emergency fund, saving for a big goal |
A Simple Rule of Thumb
A common approach many people use:
| Category | Suggested Share |
|---|---|
| Needs | About 50% |
| Wants | About 30% |
| Save | About 20% |
This is a guideline, not a rule. Every person and family adjusts these numbers based on their situation.
Practice Budget
Try this: You have $20 this week. Plan your spending.
| Category | Item | Amount |
|---|---|---|
| Need | $ | |
| Need | $ | |
| Want | $ | |
| Save | $ | |
| Total | $20 |
Check: Does your total equal $20? ☐ Yes ☐ No
Budget Tips
- Needs come first. Always cover your needs before spending on wants.
- Always save something. Even a small amount adds up over time.
- Track what you spend. Write down every purchase for one week. You might be surprised!
- Adjust as you go. A budget is a living plan — it is okay to change it.
- Unexpected things happen. That is why saving matters (see Week 11 — Emergency Funds).
Key Vocabulary
| Word | Meaning |
|---|---|
| Budget | A plan for how you will use your money |
| Needs | Things you must have to be safe and healthy |
| Wants | Things you would like but do not need |
| Savings | Money you keep for later instead of spending now |
| Expense | Any money you spend |
| Income | Any money that comes in |
Talk About It at Home
- Does our family use a budget? What does it look like?
- What is the difference between a need and a want in our family? (Some things might be different for different families — and that is okay!)
- If you had $10 right now, how would you split it between needs, wants, and saving?