Hi Sylver!

Scenario: Budgeting for a Toy

Liam is 10 years old and wants to buy a new toy car that costs USD 600. His parents give him USD 300 as allowance each month, but they also remind him to use his money wisely. They suggest that he creates a budget to help him save up for the toy.

Liam decides to use the 50-30-20 rule:

50% for needs (like school supplies)
30% for wants (like snacks or small toys)
20% for savings

Now, Liam must decide:

How long will it take him to save ₱600?
Should he change how much he saves each month?
What will he do if something unexpected comes up, like needing to buy a gift or replace his broken headphones?

TASK:

Follow-Up Questions on your Writing Journal

1. How much money does Liam save each month using the 50-30-20 rule?
(Tip: 20% of USD 300 = ?)

2. How many months will it take Liam to save enough for the USD 600 toy?
(Show your math or explain your thinking.)

3. If Liam wants to get the toy faster, what are two things he can do?
(Think about changing how much he saves or how he spends.)

4. If you were Liam, would you stick to your budget or spend some money on snacks or games? Why?
(Be honest and explain your answer.)

5. What advice would you give Liam to help him stay motivated to save?