IN THIS LESSON

Budgeting is REALLY Important in Life.

Setting money goals means choosing something you want to save for and making a plan to reach it. For example, maybe you want to save one hundred dollars for a new pair of sneakers in five months. That means you need to save twenty dollars each month. Your goals can be short term like buying a game or movie ticket, or long term like saving for a laptop or college. Having a goal gives you a reason to save and helps you think twice before spending on things you do not really need.

Budgeting is how you keep track of the money you get and the money you spend. It helps you make sure you are not spending more than you have. For example, if you earn fifty dollars a week and spend thirty on food and fun, you have twenty left to save. A budget shows you where your money goes and helps you make better choices. When you use a budget and set goals, you take control of your money and build good habits for the future.

  • 1. What is a money goal?
    A. A way to spend more money
    B. A plan to borrow money
    C. Something you want to save for
    D. A shopping list

    2. If you want to save $100 in 5 months, how much do you need to save each month?
    A. $50
    B. $25
    C. $20
    D. $10

    3. Which of these is an example of a short-term goal?
    A. Buying a car in five years
    B. Saving for a trip next month
    C. Planning for retirement
    D. Getting a job in ten years

    4. What does a budget help you do?
    A. Spend more money
    B. Keep track of your income and spending
    C. Hide your spending from others
    D. Save money without a plan

    5. If you earn $50 a week and spend $30, how much can you save?
    A. $10
    B. $20
    C. $30
    D. $40

    1. C

    2. C

    3. B

    4. B

    5. B