Earning and Spending
Learn about different ways to earn money, how to track spending, and how to make a simple budget.
Ways to Earn Money
Before you can spend or save, you need to earn money. Here are some ways kids can earn:
Pocket Money / Allowance
Regular money from parents, sometimes for doing chores
Extra Chores
Washing the car, mowing the lawn, tidying the garage
Selling Things
Lemonade stand, craft market, selling old toys at a garage sale
Gifts
Birthday money or holiday gifts from family
Income vs Expenses
Income is money coming in. Expenses are money going out. The key rule is simple:
Income - Expenses = Savings
If you earn more than you spend, you have savings!
Income (Money In)
- + Pocket money
- + Chore earnings
- + Birthday money
- + Selling old things
Expenses (Money Out)
- - Snacks and treats
- - Toys and games
- - Activities
- - Gifts for others
A Simple Weekly Budget
Here is an example of how to track your money for one week:
| Description | Money In | Money Out |
|---|---|---|
| Pocket money (Monday) | $10.00 | — |
| Canteen lunch (Tuesday) | — | $4.50 |
| Helped wash car (Wednesday) | $5.00 | — |
| Ice cream (Friday) | — | $3.50 |
| Total | $15.00 | $8.00 |
| Savings (Income - Expenses) | $7.00 | |
Key Vocabulary
Income
Money that comes in — what you earn or receive.
Expenses
Money that goes out — what you spend.
Budget
A plan for how you will earn, spend, and save your money.
Earn
To get money by doing work or providing something of value.
Worked Examples
Alex earns $8 pocket money and $4 for extra chores. He spends $5 on snacks. How much can he save?
Step 1: Total income = $8 + $4 = $12
Step 2: Total expenses = $5
Answer: Savings = $12 - $5 = $7
Emma earns $10 per week. She spends $6 on Tuesday and $5 on Friday. Is she overspending?
Step 1: Income = $10
Step 2: Expenses = $6 + $5 = $11
Answer: $10 - $11 = -$1. Yes! She is spending $1 more than she earns. She needs to cut back.
Jack tracks his spending: Mon $2, Wed $3, Fri $1. His income is $10. What are his savings?
Step 1: Total spending = $2 + $3 + $1 = $6
Step 2: Income = $10
Answer: Savings = $10 - $6 = $4
Knowledge Check
Select the correct answer for each question. Click "Check Answer" to see if you are right.
Question 1
Sophie earns $12 from pocket money and chores. She spends $7. How much does she save?
Question 2
What is it called when you get money by doing jobs or work?
Question 3
Max earns $8. He spends $3 on Monday, $2 on Wednesday, and $4 on Friday. What happens?
Question 4
Which of these is an expense?
Question 5
Zara's income is $15. She wants to save $5. What is the most she can spend?
Key Concepts Summary
- ●Income is money coming in. Expenses are money going out.
- ●The golden rule: Income - Expenses = Savings.
- ●Kids can earn money through pocket money, chores, and selling things.
- ●Tracking your spending helps you see where your money goes.
- ●If expenses are more than income, you are overspending and need to cut back.