Budgeting for Life Stages

Section 1 – Introduction to Budgeting and Life Stages

In Lesson 7.1, you learned what a budget is and why it matters. A budget helps you keep track of your income (money coming in) and expenses (money going out). You also practiced making a simple budget based on your current life as a Grade 10 student.

Now it’s time to go a step further.

As you grow up, your life will change—and so will your budget. This lesson is all about learning how to adjust your budget when your life changes. Whether you move out for school, buy a car, or start a full-time job, your needs, wants, and money choices will shift. Your budget needs to shift too.

This is called budgeting for life stages. A life stage is a period in your life when your money goals and responsibilities are different. For example, right now, you might be budgeting for snacks, savings, or your phone bill. After high school, you might need to budget for rent, groceries, or school costs. Later, you might be budgeting for a car, a family, or a home.

Knowing how to adjust your budget helps you:

• Stay in control of your money

• Plan ahead for big changes

• Make smart choices at every age

In this handout, you’ll look at real-life examples of budgeting during different life stages. You’ll learn how to balance needs and wants, make tough choices, and build strong habits that grow with you.

Section 2 – Key Vocabulary 

Before we look at how budgets change in different life stages, let’s review some important money words. These words will help you understand and talk about budgeting with more confidence.

1. Budget
   A plan for how to use your money. It shows what money you get and what you spend.

2. Income
   Money you receive. This can be from a job, allowance, or a gift.

3. Expenses
   Things you spend your money on, like food, bills, or bus fare.

4. Savings
   Money you keep for later. You can save for a goal or in case of emergency.

5. Needs
   Things you must have to live, like food, shelter, or clothes.

6. Wants
   Things that are nice to have, but not necessary—like video games or fancy drinks.

7. Debt
   Money you owe to someone else, like a loan or credit card bill.

8. Emergency Fund
   Savings set aside for surprise costs, like a broken phone or car repair.

9. Fixed Costs
   Expenses that stay the same each time, like rent or a phone bill.

10. Variable Costs
    Expenses that change, like how much you spend on snacks or gas.

Keep these words in mind—they’ll come up as you build budgets for different life situations.

Section 3 – Understanding Needs and Wants

When you make a budget, one of the most important things to think about is the difference between needs and wants.

What is a Need?

A need is something you must have to live and stay healthy. Needs are basic and important. If you don’t pay for them, you might have serious problems.

Examples of needs:

• Food and water

• A place to live

• Warm clothes and shoes

• Bus fare or gas to get to school or work

• Medicine

What is a Want?

A want is something you enjoy or like, but you don’t need it to live. Wants can be fun and exciting, but they should come after your needs are covered.

Examples of wants:

• Fast food or fancy drinks

• Video games

• New clothes (if you already have enough)

• Streaming services

• Concert tickets

Why It Matters in a Budget

When you’re making a budget—especially with a small income—it’s smart to take care of your needs first. Then, if you have money left, you can spend it on wants or save it for later.

As you grow older, your needs and wants may change. In high school, a phone may feel like a want. But later, when you need it for work or school, it could become a need.

Quick Practice: Needs or Wants?

Look at the items below. Decide if they are needs or wants:

1. A winter jacket

2. Movie tickets

3. Groceries

4. New video game

5. Toothpaste

6. Monthly bus pass

Think it through: Which ones would you keep in your budget if your money was tight?

Section 4 – Budgeting as a Teenager

Right now, you are in the teenager stage of life. Your money needs and goals might be different from an adult’s—but learning how to budget now can help you build strong habits for the future.

Where Teenagers Get Money (Income)

As a teen, your income might come from:

• A part-time job (like working at a grocery store or babysitting)

• An allowance from your family

• Doing chores for money

• Gifts during holidays or birthdays

Even if it’s not a lot, your money still matters—and it’s worth planning how to use it.

What Teenagers Spend Money On (Expenses)

Your expenses might include:

• Snacks or fast food

• Clothes or shoes

• A phone plan

• Gas or bus fare

• Going out with friends

• Saving for a goal (like a bike, concert ticket, or graduation outfit)

It’s easy to spend money quickly without thinking. That’s where a budget can help.

Example: Teen Budget

Let’s look at a sample budget for a teen named Devon:

Devon’s Weekly Income:
💰 $60 (from part-time job at the gas station)

Devon’s Weekly Expenses:
🍔 Food/snacks: $15
📱 Phone bill: $20
🎮 Spending money (fun stuff): $10
🐷 Savings (for a bike): $10
🚌 Bus fare: $5

Total Expenses: $60

This is a balanced budget. Devon is covering his needs, saving for a goal, and still has a little money for fun.

Why Budgeting as a Teen is Smart

Even if your income is small, budgeting helps you:

• Avoid running out of money

• Save up for something you really want

• Practice smart habits now for later in life

You’ll feel more in control—and less stressed—when you know where your money is going.

Section 5 – Budgeting as a Young Adult (e.g. Moving for School)

After high school, many people go through big changes. You might move away from home, go to school in another city, or start a full-time job. This stage is called young adulthood, and your budget will look very different from when you were a teen.

New Kinds of Income

As a young adult, your income could come from:

• A part-time or full-time job

• Student loans or bursaries

• Help from family

• Government programs (like scholarships or grants)

This income helps you cover your new costs—but you’ll likely have more expenses than before.

New Kinds of Expenses

When you move out or go to school, you may have to pay for:

• Rent (your place to live)

• Groceries (food to cook)

• Tuition and books (if you go to college or university)

• Transportation (bus pass or gas)

• Phone and internet bills

• Household needs (laundry, cleaning supplies)

These are mostly needs, and they must come first in your budget. You may have less money left over for wants.

Example: Student Budget

Let’s look at a sample monthly budget for a student named Alyssa who just moved to Saskatoon for college.

Alyssa’s Monthly Income:
🎓 $800 (student loan)
💼 $400 (part-time job at a café)
Total: $1,200

Alyssa’s Monthly Expenses:
🏠 Rent: $500
🛒 Groceries: $200
📚 School supplies: $100
🚍 Bus pass: $60
📱 Phone/internet: $80
🐷 Savings: $60
💡 Extra/spending: $200

Total Expenses: $1,200

Alyssa’s budget is balanced. She covers her needs, sets aside savings, and keeps a small amount for fun or surprise costs.

Why This Budget Is Important

Young adults face more financial pressure. You’re learning to be independent, but that means taking care of everything yourself. Having a budget helps you:

• Avoid going into debt

• Be ready for school costs and surprise bills

• Save for future goals like travel or a car

Even when money is tight, a budget keeps you focused and prepared.

Section 6 – Budgeting for Major Life Events (e.g. Buying a Car)

Some moments in life come with big costs. These are called major life events. They don’t happen all the time, but when they do, you need to plan for them.

One common example is buying a car.

Why Buying a Car Is a Big Deal

A car can help you get to work, school, or visit family. But it’s also one of the biggest things many young people buy—and it costs more than just the sticker price.

There are two kinds of costs to think about:

1. One-Time Costs

• Buying the car

• Registration and taxes

2. Ongoing Costs

• Gas

• Insurance

• Repairs and maintenance

• Oil changes or winter tires

If you don’t plan for all these, you might not be able to afford the car after buying it.

Saving or Borrowing?

Some people save up and buy a used car with cash. Others borrow money with a loan and make monthly payments.

If you borrow, your budget needs to include this monthly cost—plus all the extras like gas and insurance.

Example: Budget with a Car

Let’s look at Marcus. He works full-time and needs a car to drive to work.

Marcus’s Monthly Income:
💼 $2,200 (after taxes)

Marcus’s Monthly Expenses:
🏠 Rent: $700
🛒 Food: $300
🚗 Car loan payment: $300
🛢️ Gas: $150
🛠️ Repairs & oil change savings: $50
🛡️ Insurance: $180
📱 Phone: $100
🐷 Savings: $120
💡 Extra/spending: $300

Total Expenses: $2,200
Marcus has a balanced budget—but just barely. He made sure to plan for both the loan and the regular car costs.

What You Can Learn

Big purchases require big thinking. Before you buy something like a car, ask:

• Can I afford the monthly costs?

• Do I really need it right now?

• Should I wait and save more first?

Planning for major events in your budget helps you avoid stress—and debt. It also teaches you how to make smart money choices that match your goals.

Section 7 – Changing Budgets as Life Changes

Budgets are not one-time things. Your budget should change as your life changes. As you grow up, your income, goals, and needs will shift—and your money plan needs to keep up.

Here are some examples of life changes that can affect your budget:

🎓 Finishing School

After high school, you might start working full-time, go to college or university, or move to a new place. That means new income and new expenses.

• New income: A full-time paycheck or student loans

• New expenses: Rent, school supplies, bus pass, groceries

Your budget should reflect this new stage in life.

🏠 Moving Out

Living on your own is a big step. It often means paying for:

• Rent or mortgage

• Utilities (like power and internet)

• Cleaning supplies, toilet paper, and food

• More responsibility

You might need to cut back on wants for a while to afford all the new needs.

👶 Starting a Family

If you choose to start a family someday, your budget will need to stretch to cover things like:

• Childcare

• Baby supplies

• Health and dental care

• A larger place to live

This is a time when your emergency fund becomes even more important.

😟 Facing Surprises

Life doesn’t always go as planned. Sometimes things happen that we didn’t expect, like:

• Losing a job

• Medical bills

• Car trouble

• Moving suddenly

That’s why it’s smart to check your budget often and keep some savings for emergencies. Even $10 or $20 a month adds up over time.

💡 Budget Tip:

Review your budget every month. Ask yourself:

• What changed this month?

• Are my needs and wants different now?

• Do I need to adjust my spending or savings?

Final Thought

Budgeting isn’t just for teens or students—it’s for everyone, at every age. The more you practice adjusting your budget now, the easier it will be to stay in control as life keeps changing.

Step 3: Reflection Questions

Answer these questions in a notebook or on a handout page:

1. Was your budget balanced? Why or why not?

2. What was the hardest part to plan for?

3. Did you have to cut back on any wants?

4. What did this activity teach you about money?

Challenge: Try switching to a different life stage and making a second budget. How do your needs and goals change?