Money Matters • Basic Budgeting

The Money Matters overview poster is one of the two posters of the Fundamentals of Financial Literacy toolkit, created by the Khazana Foundation and StreetSmart in 2023. The two organisations joined forces to create a new toolkit together to allow more vulnerable children to learn about the basics of financial literacy via playful, accessible educational materials.

On the Money Matters overview poster, one can find over 50 situations that are directly or indirectly linked to financial literacy. At the bottom of the poster, the five coloured circles with the icons represent the five pillars of financial literacy: 

• Earn
• Spend
• Save
• Invest
• Protect

The basic budgeting exercise has the objective to allow children to think about their financial behaviour. The exercise can help them to visualise their earnings and spendings and how they can - by taking simple actions - can save extra money. The famous 50/30/20 rule can help you to give a basic framework for children to reflect on. The 50/30/20 rule is an easy budgeting method that can help people to manage your money effectively, simply and sustainably. The basic rule of thumb is to divide your monthly income into three spending categories: 

1. 50% for needs
2. 30% for wants
3. 20% for savings or paying off debt

• If the children feel comfortable with each other, ask them to present their best practices in money management.
• When looking at the Money Matters overview poster, ask the children which institutions can help you to take care of your budget.
• You can also make the budgeting exercise more practical, by giving them an amount of bottle caps before the session, and invent several things they need to spend their money on during the session (f.ex. rent a chair, buy a drink etc...)

• Learn about the basics of budgeting
• Learn about the core pillars of financial literacy