Personal Budgeting Basics

Jenna·

Budgeting

Preview

At a Glance

Grade Level12th Grade

SubjectBudgeting

Original Prompt

What a budget is, why it is used and the 50/30/20 rule for budgeting. The 50/30/20 rule is a simple way to manage your money by dividing your income into three categories: 50% for needs, 30% for wants and 20% for savings or debt. This helps you balance your spending and save for the future.

This resource provides an introduction to personal budgeting, focusing on the importance of having a budget, which serves as a roadmap for managing finances effectively. It outlines the benefits of budgeting, such as gaining control over money, reaching financial goals, preventing debt, and reducing financial stress. The material introduces the 50/30/20 rule as a simple budgeting method, breaking down personal income into three categories: 50% for needs, 30% for wants, and 20% for savings and debt repayment. Through examples and exercises, learners are guided to create their own budgets and understand real-world applications, with case studies illustrating challenges such as allocating funds and adjusting budgets. The resource also emphasizes the use of digital tools for tracking expenses, making budgeting a more manageable and engaging process.