Budgeting is like making a plan for our money. Just like we make plans for our work or activities, we also make a plan for our money. It helps us to be smart with our money and save for things we want in the future.
Let's imagine you have some money, and you want to buy a something or go on a trip to a fun place. You know you need to save your money for some time to have enough. That's where budgeting comes in!
First, we make a list of all the things we want to spend our money on. We write down the things we want or the fun place we want to go to. Then, we think about how much money we have and how much we need to save.
Next, we decide how much money we will save each week or each month. We put that money aside in a special place, like a savings account or a fixed deposit. This way, we don't spend it on other things by mistake.
We also think about how much money we need for other important things, like buying healthy food, going on vacation, or taking care of our things. We write those things down too.
By making a budget and sticking to it, we can save money little by little. We don't spend all our money at once on things we don't really need. This helps us have enough money for things we want to buy or the trip we want in the future.
Budgeting helps us be responsible with our money. It teaches us to think about what we really want and make choices. It also helps us understand that saving money is important for our goals and dreams.
We make budgets to save money and achieve their goals. So, start making your own little budget and see how you can save for the things you really want!
It's important to simplify the concept and encourage children too to start saving in their own little way, perhaps by using a piggy bank or setting aside a portion of their pocket money.
