Planning Your Budget

Holidays are a fun time to give gifts. Before you go to the mall, make a plan. A budget is a plan for how you will spend money. Decide how much money you have total — this is your total budget. Then write down people you want to buy for and how much you can spend for each person. This is called allocating your money. 

​Making a Gift List

Make a short gift list. For each person, think of one or two gift ideas and an estimated price. Use simple numbers so you can add them easily. If a gift costs more than you planned, choose a cheaper option or save more money. This helps you avoid overspending. 

​Comparing Prices

When you are at the mall, compare prices. Comparing means checking different stores to find the best deal. Some stores have sales or coupons that reduce the price. Look for a good value — that means a gift that costs a fair amount for what you get. Remember: the cheapest item isn’t always the best value. 

Saving and Spending

Saving is putting money aside for later. If you want a more expensive gift, you might save pocket money over time. Spending is using money to buy something now. Think about needs vs. wants. A need is something you must have; a want is something you would like to have. For gift shopping, focus on thoughtful gifts (things that show you care) rather than spending all your money on one big want. 

Keeping Track

Bring your list and a small notebook. Write down what you buy and the price. Subtract each price from your budget so you always know how much money you have left. This is called tracking your spending. You could also use an app on your phone to make a list and manage your money.

​Good Habits

Good Shopping Habits 

• Stick to your budget. Don’t buy things you didn’t plan for. 

• Look for sales or coupons to save money. 

• Choose gifts that show you thought about the person, not just expensive items. 

• If you get a surprise extra gift, update your list so your budget stays correct. 

Vocabulary

• Budget: a plan for how to use money. 

• Allocate: decide how much money goes to each person. 

• Compare/Comparing prices: checking different stores for the best price. 

• Value: getting the most for the money you spend. 

• Save/Saving: keeping money for later. 

• Spend/Spending: using money to buy something. 

• Needs vs. Wants: must-haves versus nice-to-haves. 

• Track/Tracking spending: writing down what you buy and how much it costs.