🌍 Social StudiesGrade 2Lesson 22
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Simple Saving and Budgeting

Lesson preview: the Mini Lesson and Vocabulary are open to everyone. Guided practice, exercises, the parent checklist and the printable PDF worksheet come with full access (free 7-day trial or membership).

Learning Objectives

  • 1Explain what a budget is
  • 2Complete a simple budget plan showing how to earn and save, spend
  • 3Track the money left over
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Mini Lesson

Imagine you earn $10 doing chores. You really want a new book that costs $4, but you also want to save up for a bigger toy. How do you decide? You make a plan — and that plan is called a budget!

What is a budget?

  • A budget is a plan that shows how much money you have, how much you will save, how much you will spend, and how much will be left over.
  • Budgets help people make smart choices so they do not run out of money before all their needs are met.
  • Even families, businesses, towns, and governments use budgets!

The four parts of a simple budget

  • Earn — The total money coming in. This could be allowance, a gift, or money earned from doing a job.
  • Save — Money set aside for the future — a goal, an emergency, or a larger purchase you cannot afford right now.
  • Spend — Money used to buy things you need or want right now.
  • Left over — The money remaining after saving and spending: Earn − Save − Spend = Left over.

A sample budget — Mia’s weekly allowance

  • Mia earns $10 in allowance each week.
  • She saves $3 in her piggy bank for a new bicycle.
  • She spends $5 on a book and a snack.
  • Money left over: $10 − $3 − $5 = $2.

Why budgeting matters

  • A budget keeps you in control of your money — you decide where it goes instead of wondering where it went.
  • Saving regularly helps you reach bigger goals over time.
  • Spending on needs first ensures your family stays safe and healthy.
Four parts of a simple budgetFour labeled rows showing the parts of a budget: Earn, Save, Spend, and Left over, with the formula Earn minus Save minus Spend equals Left over at the bottom.The Four Parts of a Budget$EarnTotal money coming in (allowance, gift, job)SaveMoney set aside for the future or a goalSpendMoney used to buy goods and services nowLeft overEarn − Save − Spend = Left overAlways cover your NEEDS before spending on WANTS!
The four parts of a budget — earn, save, spend, and left over — with the formula Earn − Save − Spend = Left over.
Mia's sample weekly budgetA budget card for Mia showing four rows: Earn $10 weekly allowance, Save $3 for a bicycle, Spend $5 on book and snack, Left over $2, with the calculation $10 minus $3 minus $5 equals $2.Mia's Weekly BudgetEarn (allowance):$10Save (bicycle fund):$3Spend:$5Book ($3) + Snack ($2)Left over:$2$10 − $3 − $5 = $2A budget keeps you in control of your money!
Mia's sample budget — she earns $10, saves $3, spends $5, and has $2 left over.
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Ask yourself: "If I earn $8, save $2, and spend $4, how much is left over?"

Vocabulary
Budget
A plan for how to use money — what to save and what to spende.g. My budget shows I will save two dollars this week.
Save
To keep money for later instead of spending ite.g. I save coins in a glass jar.
Spend
To use money to buy somethinge.g. I will spend a dollar on a snack.
Earn
To get money by doing worke.g. My brother earns money by raking leaves.
Allowance
A small amount of money parents give regularlye.g. Mia's weekly allowance is eight dollars.
Goal
Something you are working towarde.g. My goal is to save ten dollars for a book.
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