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Budgeting Pocket Money

What a budget is; planning how to spend a fixed amount of pocket money or allowance; making trade-offs between different things you want to buy

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What a learner can do afterwards

  • Create a simple spending plan for £10 showing what they would buy and how much is left
  • Explain what a budget is and why it helps to plan spending
  • Identify a trade-off (choosing one thing means not having enough for another)

The lesson

A budget is a simple plan for your money. Before you spend anything, you decide what you want to buy and how much it costs. That way you know if your money is enough.

Try it together

Zara gets £10 for the school fair. She wants a toy for £4 and a drink for £3. She adds them up: £4 + £3 = £7. That leaves her £3 to save or spend later.

Toy4Snack3Save3
Four pounds for a toy, three for a snack, three saved. That adds up to ten.
Good to know

When you choose one thing, you might not have enough left for something else. That is called a trade-off. Think about what matters most before you spend.

A budget is a plan you make first, so your money lasts and you know your trade-offs.

Watch it

Where it sits

Where this leads

Jobs that lean on this skill. Follow one to see everything it is built on.

Then practise

8 questions wait behind this lesson, each with its answer explained. Every answer feeds the sky: stars light as they are learned, and dim when it is time to come back.

Budgeting Pocket Money · Life Skills, ages 7 to 9 · LightMySky