Req 2a — Building a Budget
What Is a Budget?
A budget is a plan for your money. It tells every dollar where to go before you spend it. Think of it like a trail map — without one, you might wander in circles. With one, you know exactly where you are headed and how to get there.
For this requirement, you will create a 13-week budget — that is about three months. This gives you enough time to see real patterns in how you earn and spend money.
Understanding the Three Parts of a Budget
Every budget has three components:
Income is money coming in. For a Scout, this might include:
- Allowance (weekly or monthly)
- Birthday or holiday gifts (if they fall within your 13 weeks)
- Wages from a job (babysitting, lawn mowing, part-time work)
- Money earned from selling things
Expenses are money going out. Think about everything you spend money on:
- Food and snacks (buying lunch at school, snacks with friends)
- Entertainment (movies, games, streaming subscriptions)
- Transportation (bus fare, gas money if you are driving)
- Clothing
- Gifts you buy for others
- Scout-related costs (campouts, equipment, dues)
- Personal items (hygiene products, phone case, school supplies)
Savings is money you set aside for the future instead of spending it now. This might go toward a specific goal (like the major purchase from Requirement 1) or into a general savings account.
Setting Up Your Budget
You can create your budget in several ways:
- On paper: Use a notebook with columns for each week
- Spreadsheet: Use Google Sheets, Excel, or another app
- Budget template: Use the forms in the Personal Management merit badge pamphlet
- Budgeting app: Some apps are designed for teens and young adults
No matter which format you use, your budget should have:
Budget Layout
What to include each week
- Week number and dates: Label each of the 13 weeks
- Expected income: List each source and amount
- Expected expenses: List each category and amount
- Planned savings: How much you will set aside
- Totals: Sum of income, expenses, and savings for each week
How to Estimate When You Are Not Sure
Some weeks are easy to predict — your allowance is the same every week, for example. Others are trickier. Here are strategies for estimating:
- Regular expenses: If you buy lunch at school three times a week at $5 each, that is $15 per week — easy.
- Irregular expenses: A friend’s birthday party might only happen once during your 13 weeks. Put it in the week you expect it to happen.
- Surprise expenses: Set aside a small “miscellaneous” amount each week (even $2–3) for things you cannot predict.
A Word About the 13-Week Timeline
Thirteen weeks is a long commitment, and it is worth noting that you will also need to track your actual spending for these same 13 weeks in Requirement 2c. Start your budget and tracking at the same time — this way you can compare your plan to reality when you are done.
Practical Money Skills — Budget Basics Free budgeting tools, calculators, and guides designed for young people learning to manage money.