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What Is a Budget?
A BUDGET is a plan for how to spend your money. It helps you figure out what you can afford BEFORE you buy.
Jake has $10 to spend at the pet store. He NEEDS food ($3) and a water dish ($4). Those are NEEDS — the must-haves.
Needs total: $3 + $4 = $7. He has $10 - $7 = $3 left for WANTS — things he'd like but doesn't absolutely need.
With $3 left, he could buy a toy mouse ($3), or 3 treats ($1 each), but NOT the fancy bed ($6).
**Think About It:** Always buy NEEDS first, then spend leftover money on WANTS.