How to go about budgeting your money

By Our Reporter

Budgeting is like making a plan for your money. Just like when you build something with LEGOs, you need to know which pieces go where — the same thing happens with money.

A budget helps you decide how much to spend, how much to save, and how much to share or use later.

Let’s say you get 10,000 shillings for your birthday. Instead of spending it all at once on candy or toys, you can make a plan that looks like this:

• Save 5,000 shillings in your piggy bank for something big later, like a new game.
• Spend 3,000 shillings on something fun, like a snack or a small toy.
• Use 2,000 shillings to help someone else or save for school supplies.

That’s a simple budget! It helps you make smart choices so you don’t run out of money too soon.

You can make a budget any time you get money — from gifts, pocket money, or doing small jobs like washing your dad’s car or helping around the house.

However, there are some important aspects of budgeting you should understand. These will help guide you and make better budget plans.

1. Wants and needs — A “need” is something important (like school shoes), and a “want” is something fun (like sweets). Of the two, needs always come first.
2. Save for the future — Even a little saved now can help you buy something big later.
3. Track your money — Write down how much you get, spend, and save. This way, you always know where your money is going.

Budgeting helps you become responsible, and even grown-ups do it! When you plan your money, you can enjoy both the fun things and the important things without stress.

And the best part? The more you practise, the better you’ll get at it!