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Ages 10+ · Money · Saving and budgets
Making a budget
Coins in: 40Make groupsGive every coina jobCheck at themonth's end
Making a budget.
The big ideaA budget is a plan for coins in and coins out. It can change.

How it works

A budget is a plan for coins in and coins out. Mina earns 10 coins every Saturday, so four Saturdays bring 40 coins in.

She makes four groups: needs, fun, saving and gifts. Needs like pencils and bus rides come first, but fun and gifts are okay too.

A budget balances when the coins planned match the coins coming in. Mina's plan, 10 + 12 + 10 + 8, is exactly 40, so every coin has a job.

A budget is not a cage. It is a plan that changes when life does, as long as it still adds up.

Mina's plan02468101210Needs12Fun10Saving8Giftscoins
Mina's first plan for 40 coins.
First plan• Needs 10• Fun 12• Saving 10• Gifts 8New plan• Needs 12• Fun 10• Saving 10• Gifts 8
Her plan before and after the bus cost 2 more. Both add up to 40.

Example 1: Coins in

  1. Mina earns 10 coins every Saturday.
  2. Four Saturdays: 10 × 4 = 40 coins in.

Example 2: Does the plan balance?

  1. Needs 10, fun 12, saving 10 and gifts 8.
  2. 10 + 12 + 10 + 8 = 40.
  3. The plan matches the 40 coins coming in, so it balances.

Example 3: Changing the plan

  1. In week two the bus costs 2 coins more, so needs grow to 10 + 2 = 12.
  2. Mina moves 2 coins across from fun: 12 − 2 = 10.
  3. The new plan: 12 + 10 + 10 + 8 = 40. It still balances.

Example 4: A plan that does not balance

  1. Needs 12, fun 12, saving 10 and gifts 8.
  2. 12 + 12 + 10 + 8 = 42, which is 2 more than the 40 coins coming in.
  3. Move 2 coins out of one group, and the plan adds up again.

Words to know

budget
A plan for coins in and coins out.
balanced
The coins planned match the coins coming in.
coins in
The coins you get, like 10 each Saturday.
group
A part of the plan: needs, fun, saving or gifts.

Watch out

Try it

  1. Mina earns 10 coins on each of four Saturdays. How many coins come in?
  2. A plan has 4, 2, 2 and 2 coins in its four groups. How many coins is that in all?
  3. When is a budget balanced?
  4. Pencils for school: needs, fun or saving?
Answers: 1. 40 coins · 2. 10 coins · 3. When the coins planned match the coins coming in · 4. Needs
Try at homeWith a grown-up, make a budget for a small amount of pretend coins. Use needs, fun, saving and gifts.
For grown-upsMake a budget together for a small amount of pretend coins, in four groups. Then change one group and check that the plan still adds up.
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