Introduction to Budget for Kids and Teens
This video explains the concept of a budget in a simple, concise way for kids and beginners. It could be used by kids & teens to learn about budgeting, or used as a money & personal finance resource by parents and teachers as part of a Financial Literacy course or K-12 curriculum.
Suitable for students from grade levels:
- Elementary School
- Middle School
- High School
The topics covered are:
What is a budget?
It is reviewed periodically and revised as needed.
What’s in a budget?
A budget has all your income, whether it is income from a job, freelancing, or a business; and all your expenses, whether they are essentials, like rent, utilities and groceries, or discretionary expenses, like eating out or entertainment.
It also includes future large purchases you need to set aside or save money for. Like a vacation, game console, cell phone, etc.
Why should I create a budget?
A budget encourages people to live within their means and helps them make good financial decisions.
When you write down and track your income and expenses, it helps you see your overall financial picture clearly. This way you can identify unnecessary expenses you can cut out, and instead use the money you’ve saved on other things that you truly enjoy.
Who needs a budget?
Often people think of budget as a tool used only by people struggling financially. But they couldn’t be more wrong.
Everyone needs a budget, as it can be used not just to get out of financial distress, but to avoid getting into it in the first place.
When someone creates a budget, they have a better understanding of their finances which enables them to make prudent money management decisions. They are able to plan ahead for large purchases, avoid overspending, and use the extra money on things that really matter to them.
Check out our post about creating a budget to learn how to create a budget for yourself.