---
title: "Budgeting Pocket Money"
description: "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"
canonical: https://lightmysky.com/learn/life-skills/budgeting-pocket-money-mt_Qzbh-_v0Gq
source: https://lightmysky.com/learn/life-skills/budgeting-pocket-money-mt_Qzbh-_v0Gq.md
retrieved: 2026-10-19
---

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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

Subject: Life Skills · Area: Money & Finance · Ages 7 to 9
Page: https://lightmysky.com/learn/life-skills/budgeting-pocket-money-mt_Qzbh-_v0Gq

## Ready when they can

- 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)

## Lesson: Budgeting Your Pocket Money

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.

**Example.** 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.

*(drawing: Four pounds for a toy, three for a snack, three saved. That adds up to ten.)*

**Tip.** 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.

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

## Practice

11 questions on this page, each with its working shown.

## Needs first

- [Needs & Wants](https://lightmysky.com/learn/life-skills/needs-and-wants-mt__ab4knIaSL)
- [Buying Things](https://lightmysky.com/learn/life-skills/buying-things-mt_RNRymbz5SO)
- [Saving Money](https://lightmysky.com/learn/life-skills/saving-money-mt_zrCyqhngYm)

## Opens up

- [Borrowing & Debt](https://lightmysky.com/learn/life-skills/borrowing-and-debt-mt_bAy4dmP1-A)
- [Spending Inside Games and Apps](https://lightmysky.com/learn/life-skills/spending-inside-games-and-apps-mt_DCmLETXmjd)
- [The True Cost of a Phone](https://lightmysky.com/learn/life-skills/the-true-cost-of-a-phone-mt_L_o7NzVuh5)
- [Saving for Something Months Away](https://lightmysky.com/learn/life-skills/saving-for-something-months-away-mt_NFZG8bDa5o)
- [Making a Simple Plan](https://lightmysky.com/learn/life-skills/making-a-simple-plan-mt_phpn6KhCAv)
- [Financial Planning](https://lightmysky.com/learn/life-skills/financial-planning-mt_r1hw-KenpK)
- [A Budget That Survives a Real Month](https://lightmysky.com/learn/life-skills/a-budget-that-survives-a-real-month-mt_tFRHTFelNG)
- [Your First Bank Account and Card](https://lightmysky.com/learn/life-skills/your-first-bank-account-and-card-mt_YoV2gRHaLS)