Q1.
Imagine you have ₹ 100 to utilise in a month. Your task is to plan how to spend and save wisely. Think about your expenses for stationery, snacks, toys, etc. Decide how much you will save in your piggy bank and how much you will use for your expenses. After making this plan, think about how saving money could help you in the future. Use the table below to create your budget:
| Category | Planned amount | Why did you choose this amount? |
|---|---|---|
| Savings | ||
| Expenditure |
Answer
Split the ₹ 100 into two parts. The two parts must add up to ₹ 100.
Savings + Expenditure = ₹ 100
₹ 40 + ₹ 60 = ₹ 100
₹ 40 + ₹ 60 = ₹ 100
| Category | Planned amount | Why did you choose this amount? |
|---|---|---|
| Savings | ₹ 40 | I want to buy a story book that costs ₹ 120. If I save ₹ 40 every month, I can buy it in three months. |
| Expenditure | ₹ 60 | I need ₹ 25 for a notebook and pencils, ₹ 20 for snacks and ₹ 15 for a small toy or a game. |
Stationery ₹ 25
Snacks ₹ 20
Toy ₹ 15
25 + 20 + 15 = ₹ 60
Snacks ₹ 20
Toy ₹ 15
25 + 20 + 15 = ₹ 60
How saving helps in the future. The ₹ 40 kept aside each month becomes ₹ 120 in three months. That is enough for the book. In a year it becomes ₹ 480, and that can pay for something bigger, or help at home in a difficult month.
Why save first: if you put the ₹ 40 into the piggy bank on the first day, it stays there. If you wait till the end of the month, it is usually gone.
Tip: your amounts can be different from these. Just check that savings and expenditure together make exactly ₹ 100.