✓ The 50/30/20 Rule
Financial Literacy
Budgeting Basics
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Financial Literacy
Budgeting Basics
Section 2 of 3
What Is a Budget?
A budget is your money's game plan — written down before you spend anything. Most people skip this step and wonder why they run out of money before the month ends. A budget flips that: you decide what matters, and your money follows.
The 50/30/20 Rule
Split your income into three buckets. Put 50% toward needs — rent, food, transportation. Put 30% toward wants — entertainment, clothes, going out. Save the last 20%. If you earn $400 this month, that's $200 for needs, $120 for fun, and $80 saved. Simple.
Key Takeaway
A budget doesn't limit your freedom — it gives you more of it. When you know where your money goes, you decide where it goes next.
Quick Check
Using the 50/30/20 rule, if you earn $400 per month, how much should you save?
80%
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