Idea 13of 23Builds onA budget plans money in and out
Needs come before wants
Which lines of a budget come first?
Today you'll discover
- how to tell a need from a want
- why needs are planned first
- which line to cut first
Think firstKai's money out
Which of Kai's expenses is a need?
Decide first, then press Next. Ask of each line: must have, or nice to have?
Kai's money out: bus fare $12, movie with friends $10, save for a bike $15. Small tags appear at the start of each line: need, want, save. Then Jo's Saturday: activity, want; food, need; gift, want; save. Bars compare Jo's $30 in with $35 out. The last step shows Ren's week: winter mitts $9, trading cards $7, save $4.
See the whole ideathe big idea and the key word, in one place
The big idea
A need is something you must have; a want is nice to have. Plan needs first.
Needs and wantsNeeds: food, warm clothes, a way to school. Wants: treats, games, outings. Some depend on the person and the season.
Easy to get wrongThe biggest line is not always the one to cut. Cut a want first, even a small one, before a need.
Key words
- need
- something you must have to live, stay healthy or get where you have to go
- want
- something nice to have that you could do without
Ready to use it?
- Tag each expense as a need or a want.
- Choose which line to cut first.