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:
Infographic: Click Here to Download
What is a budget?
A budget is a plan for managing your money. It’s created based on an estimation of your income and expenses for a set period of time, usually a month or a year.
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.
You could also invest the extra money, or use it to pay off debt.
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.
Download Transcript: Ideal for Use by Teachers in their Lesson Plan to Teach Kids & Teens
Podcast: What is a Budget
Fun, informative and concise episodes by a 10-year old, breaking down complex financial concepts in a way that kids and beginners can understand. Episodes cover personal finance topics like saving, investing, banking, credit cards, insurance, real estate, mortgage, retirement planning, 401k, stocks, bonds, income tax, and more, and are in the form of a conversation between a cowboy (a finance novice) and his friend, a stock broker. Making finance your friend, only at Easy Peasy Finance.
A little bit about me: I have been fascinated with the world of personal finance since I was 6! I love to read personal finance books, and keep myself updated on the latest by reading various personal finance magazines. My friends often ask me questions about finance because they find it complex and intimidating. That’s what inspired me to start my YouTube channel called Easy Peasy Finance when I was 8, and this podcast 2 years later.
Everything you need to know about a budget: What is a budget, what is in a budget, why should you create a budget, who needs a budget, and more.
Show notes and transcript at: https://www.easypeasyfinance.com/budget-for-kids-beginners-budgeting/