Budget and savings

Budgets and savings. Ever heard of them? A budget is a tool that lets you keep track of exactly how much money you earn and how much money you spend. It also lets you calculate how much money you have left over for future goals. Here, let’s look at an example. Let’s say that you grew so much since last winter, that you need to buy a new snowboard this year. Since your parents are already paying for your snowboarding lessons, they ask you to pay for a part of the cost of your new board. That means you’ll have to pay $40 by the time your lessons start. And you’re right, that’s a lot! But there’s no need to panic. Since your lessons don’t start for another 10 weeks, you only need to save $4 a week to make it to $40 in time. (super: $4 x 10 weeks = $40.) It’s already looking less scary, right? To figure out how to make the money you need in the time you have, all you need is a game plan. So, let’s do the math: Every day of the week, you walk your grandma’s dog, Coco. As a thank you, she gives you $1 a day, which makes $7 a week. Phew—looks like you’ll have enough for your new board! You could even put aside the $3 left over. That’s what we call savings. Savings is money you have left over once you’ve paid your expenses. You keep it for later and put it toward something you care about. Like that movie you want to see in the theatres, or a new basketball or a gift for your little sister’s birthday. To figure out how much you can save, you need to make a budget. Think of it as a map to your treasure! Ahoy there, matey! Ask your parents to help you set up a budget and a realistic savings goal. They’ll guide you in the right direction! Well done! You’ve now finished watching our video on budgets and savings.