Essential Budgeting Skills for Teens

Stacey, a teen services library assistant, introduces essential life skills for teens, focusing on financial literacy. The video covers the importance of budgeting, understanding the difference between needs and wants, and creating a simple budget. It guides teens on how to track income and expenses, balance their budget, and save money. The video concludes with resources for further learning, including a printable budget and information on personal finance courses available through the library.

Why is it challenging to avoid overspending without a budget?

• Not knowing where the money is spent

• Lack of understanding of income sources

• Both lack of understanding of income sources and not knowing where the money is spent

• Having too many wants

What is a need in the context of budgeting?

• Money for entertainment

• Expenses for hobbies

• Money for eating out

• Basic living expenses

What is considered a want?

• Groceries

• Housing payments

• A new video game

• Transportation costs

Why is it important to differentiate between needs and wants?

• To prioritize spending

• To spend more on wants

• Needs are always cheaper

• Wants are not necessary

What is the first step in creating a budget?

• Calculating expenses

• Setting financial goals

• Listing your wants

• Tracking your income

What types of income should be recorded in your budget?

• Only wages from a job

• Gifts and allowances only

• Income from investments only

• Wages, gifts, and any other income

What should you do if you have extra money after covering all expenses?

• Ignore it

• Loan it to a friend

• Increase your savings

• Spend it on wants

What should your budget balance to?

• A surplus of income

• Zero, with income and expenses balanced

• Variable each month

• A deficit to cover next month

How often should you adjust your budget?

• Weekly

• Monthly

• Whenever new expenses arise

• Annually

What is a practical step for teens to take towards financial literacy?

• Ignoring financial advice

• Creating and following a budget

• Borrowing money from friends

• Spending all their money