Budgeting

Estimating financial activity over a specified future period of time.

What is Budgeting?

Budgeting means creating a plan for how to spend and save your money. It helps ensure you don’t run out and allows you to reach your financial goals.

Budgeting Methods

50‑30‑20 Rule

  • 50% Needs – school supplies, lunch, essentials
  • 30% Wants – games, clothes, outings
  • 20% Savings – for big goals or emergencies

Envelope Method (Cash‑Based)

  • Spending
  • Saving
  • Giving
  • Education or Hobby

Digital Budgeting Tools & Apps

Apps like Greenlight, GoHenry, Step, or YNAB (You Need A Budget) let you manage budgeting in real time.

Weekly or Monthly Budget Sheet

Track income (allowance, gifts, job), expenses, and savings progress.

Goal Setting

Goal setting means choosing what you want to achieve and making a step-by-step plan to reach it.

  1. Choose a money goal (e.g., “Save $100 for headphones”).
  2. Make it SMART: Specific, Measurable, Achievable, Realistic, Time‑bound.
  3. Break it into mini-goals (like weekly savings).
  4. Make a plan: Where will you save? How will you track it?
  5. Find ways to earn more, like chores or selling crafts.
  6. Track progress with a chart, checklist, or app.
  7. Stay focused: Avoid impulse buys, keep visual reminders.
  8. When you reach your goal, celebrate—and set another one!