Junior: Budget Maker

A budget means keeping track of how to spend and save money to meet a goal. So,
why do you need to budget? Let's say you want to buy something, but it costs more
money than you have. Or your troop has money to spend from Girl Scout Cookie sales
and you have a goal you want to meet. Creating a budget helps you plan to meet your
goals. As part of that plan, learn smart ways to spend, save, and share money.

When I've earned this badge, I'll be able to create a budget to save for the things I want
and need.

Words to Know
• Account: The place in a bank or financial institution where someone's
money is held. Accounts each have a unique set of numbers that
match up with the person who opened the account.
• ATM: "Automated teller machine." This machine lets customers make
deposits or withdrawals from a bank account and check their balance.
• Balance: The amount of money in an account.
• Bank: A place that looks after people's money and keeps it safe.
• Brainstorm: A fun word that means coming up with new ideas and
different ways to solve a problem.
• Budget: A plan for how to use money for a certain length of time to
meet a goal.
• Deposit: Putting money into an account.
• Essential: Extremely important or necessary.
• Feedback: What someone thinks of another person's ideas.
• Financial institution: A company that manages money, such as a bank,
savings and loan, or credit union.
• Goal: Something a person wants to do, be or have. It can also mean
what a person plans to do with the money they earn. Influence:
Persuade or sway-the power to change how a person thinks or acts.
• Interest: When a person deposits money in a savings account, that
money earns more money, called interest.
• Needs: The things people must have to stay healthy and be safe, like
clothing, housing, and medical care.
• Savings: Money that is not spent and has been set aside to use later.
• Survey: To collect information.
• Wants: The things people would like to have but can live without.
• Withdraw: Taking money out of an account.

Requirements
 1. Investigate why you want what you want
2. Practice spend-save-share
3. Learn how to decide what to buy
4. Find out how financial services help people save
5. Build a spend-save-share plan

Activity #1
Investigate why you want what you want

Sometimes it's hard to tell the difference between what you need and what you want.
Advertisers create exciting commercials or images to convince you that you need what
they are selling. Or you might think you need something because your friends have it.
But the things you need are essential to keeping you safe and healthy, like water, food,
and clothing. Think about what makes you want something you may not need.

Choose one activity:

• Analyze what you own. Think of five things you own and write them down on
separate index cards. They could be things like a backpack, lunch bag, sneakers,
jacket, tablet, video game player, or reusable water bottle. Line up your cards on
a table or floor from the items you need most to the items you need least. Then
consider each item. What inspired you to want it? Do you need it? How do you
know? Do you use it often? Do you think you'll still need it a year from now?
Share your results with a friend or family member.
• Role-play money and happiness. With friends, break into groups to act out these
three scenes. In each role play, show how these scenes can make people happy.
Group 1: Buy an experience. (This might be an experience like a camping trip,
ticket for a roller coaster ride, or day at an arcade.) Group 2: Buy a small treat.
(This might be a hot chocolate on a cold day or a sticker to add to a backpack.)
Group 3: Spend on someone else. (This might be a gift for a family member or
donation to charity.) How is each of these experiences different? How do you feel
paying for them?
• Do a survey. Collect information from at least five people in different places, like
your school or Girl Scout troop. Ask what they think are three trendy or popular
items, a brand of sneakers or the newest phone. Put the lists together and check
off any items you'd want, too. Did the people you surveyed influence what you
want? Did something else inspire your picks? Do you think you'll still want these
items 2 or 3 years from now?

Activity #2
Practice spend-save-share
Spending is for things you need to buy right now, or for smaller things you want. Saving
is money you're setting aside for a bigger purchase. Sharing is money you plan to use
to help others. Do one of these choices to find out how to spend, save, and share.

Choose one activity:

• Make a plan with your troop. On a large sheet of paper, write at the top: Spend,
Save, and Share. In a column down the left-hand side, make a list of 10 things
your troop wants or needs, like a trip to the zoo or a new first- aid kit. Have an
adult help you find out how much each item costs. Then give your group $50 in
play money. Decide together how you'll spend, save, or share the money. Will
you spend it all on the item you want or need most, or save money to get it or
something else later? What can you do to share your money?
• Create spend-save-share jars. Decorate three different jars for spend, save, and
share. Now imagine you need school supplies that cost $10. You have $20 in
play money to spend. How will you divide the money in your jars? Give your
family member or friend the same play money and school supplies budget and
see how they would divide the money. Why did you each make the decisions you
made?
• Plan for the unexpected. From the "Unexpected Expenses" box, write down each
item on a separate slip of paper. Put the slips of paper in a container. Now
imagine you earn $10 a week. On top of a sheet of paper, write Spend, Save,
and Share: Week 1. Under that, write your goals for that week. Have an adult
help you find out how much they cost. Pull out one slip of "unexpected
expenses." How will you need to adjust your budget for week 1? Create a new
budget for week 2, but this time you'll earn another $10. Take the same steps but
remember to carry over any money and goals you have from week 1. Keep going
for as many weeks as you want. What did you learn about dealing with spending
issues that might come up unexpectedly?

Unexpected Expenses: These are things you spend money on but didn't really plan
for. Write these examples down on separate slips of paper, or cut these out to play
"Plan for the Unexpected":
• It's a family member's birthday and I need to spend $4 on supplies to
make something.
• I forgot to bring my lunch to school, so I had to buy food for $5.
• I found a book I'd been wanting to read and bought it for $5.
• I spent $10 to get new headphones to replace the ones I broke.
• My friend didn't have enough money for bus fare, so I gave her $2.
• I need to save $25 to buy a pair of soccer cleats.
Pro or Con?
• I want this item but don't need it.
• This item will make my life easier.
 • I have enough money to buy it and would still have enough left in my
savings.
• I don't have enough money right now to buy this item.
• I want it because I like to get the newest thing and my friends have it.
• I need this item to replace one that is not working well or is broken.
• The item isn't on sale.
• The item is on sale and is at a good price.
• I haven't compared the item to other models and brands.
• I haven't checked to see if other people are satisfied with this item.
• I've done research about this item and know that it's a good value.
• I can borrow this item from a friend or neighbor.
• I will use this item all the time.
• I will feel happier when I have this item because:
• I might regret buying this item because:

Activity #3
Learn how to decide what to buy

"Buyer's remorse" is the disappointment people sometimes feel after buying an item.
Often, they were influenced by the media or peers, or they've convinced themselves
that they really needed something-like the latest device or hottest sneaker-only to later
discover that it wasn't all that great or worth the cost. If you think through your reasons
for buying something, you can end up feeling happier about your decision to purchase
or not purchase.

Choose one activity:

• Visit a store. Start by picking an item you need or want that comes with different
options at different prices, such as a pair of shoes or a computer. With an adult,
go online or to a store to compare two or three versions. Find out what makes
them different and how that affects the price. Being more informed about the
available options makes it less likely we will purchase something spontaneously
and regret it later.
• Figure out the pros and cons. When people make a big decision, they often list
the pros and cons. This means listing the advantages (pros) and disadvantages
(cons) to help decide. With your friends, think about one big-ticket item to buy. It
could be a new trendy jacket, a bike, or a magic set. One by one, read out the
statements in the "Pro or Con?" box. Then say whether it's a pro or con and why.
Continue until you've finished all the statements. Did everyone agree on the
choices? Did these questions change how you would think about making future
purchases?
• Find out what other people think. Think of an item you want to buy. It could be
something for you or your troop. Then, with an adult, go online to find out what
 customers who bought your product say about it. What kinds of complaints did
they have? What did they like about it? If possible, interview someone who
knows about the item you want to buy. It might be an older sibling or someone
who sells your item. Ask questions like: What product (model) is best for me?
How can I find the best price? Are there any downsides to buying this product?
Are parts expensive to replace? Is an improved model coming out soon so I
should wait?

Activity #4
Find out how financial services help people save

It's never too early to start saving money. A bank or other financial institution is a place
that looks after people's money and keeps it safe. When people put money in a bank or
financial institution, it's called a deposit. Money in a savings account can earn interest.
The sooner someone starts to save money, the more they'll have for things they want in
the future! It can be tempting to spend money if it's in your wallet. Having it in a bank
can help you take your time when making decisions.

Choose one activity:

• Talk to a financial expert. Have an adult help you set up an in-person or video
chat with a banking or financial services professional. Make sure they know you
are learning about finances and only seeking information. Ask them for details
about savings plans. Are there special plans for people just starting to save? Find
out how people can borrow money and what interest means.
• Watch a video. With a friend, write questions you have about how banks and
other financial services can help people save money. Then, with an adult, watch
a video about banking and financial services to see how many of your questions
you can find answers to.
• Use an interest calculator. When you deposit your money in a savings account,
your money earns more money, called interest. See how far your money would
go if you deposited it in a savings account. With an adult, find a simple interest
calculator online. Decide how much you want to deposit and how many years
you want to save. Imagine you would earn 0.50% interest yearly and see how
your money would grow over time. What happens when you add more money to
the savings account?

Bank Business
• Why does putting your money in a bank save money? Because it's in a
safe place, earning interest.
• What is interest? When you deposit your money into a savings
account, your money earns its own money, called interest. The
financial institution or bank pays you this interest because you've put
 your money into a savings account with them. They know it helps to
encourage you to keep saving because your money is earning interest!
• How do people deposit cash? People go to a bank, financial institution,
or ATM to deposit money. They may fill out a deposit slip that says the
amount of money they are putting in and the account number. The
teller (or machine) puts the money into the account and gives a receipt.

Activity #5
Build a spend-save-share plan

Now that you understand how spending, saving, and sharing works, plan for something
you want or that your troop wants.

Choose one activity:

• Make a plan for your cookie money. Make a group decision about how to use the
money you and your troop earn selling cookies. Start by brainstorming your troop
needs and wants. Make sure everyone knows there are no bad ideas! Write your
list on a board and divide into spend, save, and share. Spend is what you'll use
the money for now, save is for something in the future (such as a troop trip), and
share is what you plan to donate or use to help your community. Create a budget
so you can track your spending and savings to meet your goals.
• Plan for something you want or need. Come up with at least one item that you or
your family needs. Then work together to come up with a budget that will let you
save for it. It doesn't have to be something you really buy, but plan for it anyway.
Ask your family how you can set aside money for sharing, like to help donate to
others.
• Look into your future! Imagine yourself 10 years from now. What 10 items do you
think you'll need daily? You might be driving, so will you need a car? Will you
need a briefcase, purse, or backpack to carry your things? Come up with a list
and create a spend-save-share budget for your future self.