Financial Literacy for Kids: Understanding Budgets

What is a budget?

• A game about money

• A plan for spending based on income and expenses

• A type of savings account

• A list of toys you want

What are the two types of expenses mentioned?

• Fixed and variable

• Permanent and temporary

• Predictable and surprising

• Long-term and short-term

What happens if you spend more money than you have?

• You go into debt

• You earn more money

• You win a prize

• You get a bonus

What should a budget be prepared for?

• Winning a lottery

• Unexpected expenses

• Buying unlimited toys

• Going on vacations only

What did Frankie do with the money she had left after her expenses?

• Put it into her savings account

• Bought more video games

• Gave it all away

• Lost it