Making, Saving, and
Do you have to ask your parents for everything? If you do, you can stop. Try to make your own money. Here are some steps!
You can work and get an income. One way you can get this is by helping around the house to get the income of an allowance. You could also put up a lemonade or food stand and get the income of . . . well people paying you. You could also work in a family shop, get a newspaper route, baby-sit, rake leaves or get other jobs in order to get a salary. There are other ways too.
Grownups get their money by working for it. Some adults work at businesses or for the government. Some even have their own businesses. A person who works for someone else is called an employee. The company or place that the employee works is called the employer. The employer pays a salary to the worker. What kind of job will you have some day?
Once you have made your money you can do what you want, right? Wrong! Making money is just one step in the money process. Next, instead of spending all your money, you may want to save it. Most people spend their money on the things they need (like food and clothes) or on things they want (like toys and games). But you can also save your money in a piggy bank or a bank account. You can make a budget for your money to help you plan for saving some of it. In a budget, you keep a record of the money you earn and the money you spend. It will help you make sure you don't spend more than you earn! Did you know that businesses and governments have budgets? They try to make sure they balance their budgets. When you balance your budget, you make sure the money being spent is equal or less than the money coming in.
Another way to save money is instead of buying everything at a store, think of ways you could make items at home by recycling things such as light bulbs, paper products, cardboard, and anything you might otherwise just throw away.
After you save your money you can spend it. Spending may seem easy, but you've got to be careful. First of all, you canít spend more than you have, so you have to know how much you have and how much you want to spend. Remember, you might not want to spend all of your money. You will probably want to save some. An idea to help you see how much you can spend is to make a chart. Write down how much money you have, how much you want to spend, and what you want to spend it on. After looking at your chart you are ready for the final step . . . go shopping!
Images of walking penny, recycle, and women shopping from "Microsoft Office Online" <http://office.microsoft.com/clipart/default.aspx?cag=1> Images free for non-profit and personal use. (October-February, 2003-2004).
- The money a person gets from salary, wages, and other sources. Return
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