Money in the Real World

What Is a Budget?

Needs vs Wants

Just because you want something doesn’t mean you need to buy it. If your budget does not allow you to buy the things you want, you may have to go without. It is more important to focus on the things you have to have to survive, rather than the things you’d really like to have.

Want versus need

As much as you may want to buy a new bike, new phone or a new toy, you have to make sure you can pay your bills first. Having clothes, food, and toilet paper is a lot more important. You may not have bills now as a child, but you will have a lot when you get older. You have to budget for your needs first before you think about your wants.