The Art Of Budgeting

  • Practice by making your own budget beforehand.
  • Make copies of the personal budget worksheet in advance to hand out in the session.
  • Flipchart or Board Markers
Time Required: 
One Hour
  • To learn the basics of making a budget.
  1. Explain to each girl what a budget is:
    • A budget is a summary of estimated income (money coming in) and how it will be spent over a defined period of time (money going out).
    • Budgets help you plan your expenses over the long term.
    • Budgets are made up of two parts – income and expenses.
  2. Give them each paper and markers or crayons. Ask them to draw a picture of a typical adolescent girl. They should give their drawing a name, decide her age, and what she is like. Then ask them to write two sources of income (places she gets money), and two expenses (places she wants to spend money). Give them 10 minutes to complete this exercise. Examples include:
    • Income: gift, allowance, job
    • Expenses: food, family, savings, school, fun, transportation
  3. While the girls are working, draw a large budget sheet on the board. See Handout 33 for how this will look.
  4. Once the girls finish their drawing, ask a few of them to share. Then tell them you are going to show them how to put a budget together.
  5. Use their ideas for income under the income column. Ask how much they think each item will be (e.g. allowance = five rupees). Total up the income.
  6. Now fill in the expenses sheet the same way. List some of the expenses the girls named. Remind them the differences between needs and wants that you learned in the previous sessions. For each expense put an amount next to it. Then add up the expenses.
  7. Now explain that a budget has to be balanced, and you can’t have more expenses than income.
    • Does your budget have more income than expenses? Explain that the extra money could go to savings.
    • Does your budget have more expenses than income? Tell the girls they will have to take off some expenses.
  8. Close by giving each girl a personal budget worksheet. If she would like, for homework, she can complete the worksheet for herself.