Session 1: Money Basics You would explore the difference between needs and wants and practice the 50‑30‑20 budgeting rule. The focus is on building awareness of how money should be divided for essentials, desires, and savings. Session 1: Money Basics Before we start Money is part of everyday life. We use it for food, travel, phone recharge, clothes, and many small things. Some spending is necessary. Some spending is only for comfort or enjoyment. This session helps us understand that difference and gives us a simple tool to manage money better. Session objective By the end of this session, you will be able to: Tell the difference between needs and wants, Use the 50-30-20 rule, Try one simple budget on your own. A small story Ravi is 17 years old and stays in a Child Care Institution. One day, he gets ₹500 from a short training programme. He feels happy and wants to spend it quickly. He thinks of ordering food, buying earphones, and keeping nothing for later. Then a staff member asks him a simple question. "If this money finishes today, what will you do next week?" Ravi stops and thinks. He realises money goes faster than it comes. He decides to split it properly. A little for what he needs, a little for what he wants, and some for saving. That is what this session is about. Part 1: Needs and wants Needs Wants Things we must have to live and function well Things we like to have but can manage without Example: food, rent, medicine, travel for school or work Example: movies, fast food, shopping, extra gadgets Instructions: Put each item in the correct column. Item Need or Want Rice and vegetables   Movie ticket   Bus fare to work   New shoes for style   Electricity bill   Mobile game top-up   Medicine   Café visit   50-30-20 Examples If the monthly income is 100: Part Use What it covers 50% Needs Rent, food, transport, medicine, EMIs, insurance 30% Wants Movies, shopping, eating out, hobbies 20% Savings Emergency fund, future goals, investments 50-30-20 Examples If the monthly income is 100: Category Calculation Amount Needs 50% of 100 ₹50 Wants 30% of 100 ₹30 Savings 20% of 100 ₹20 Total 50 + 30 + 20 ₹100 Instructions: Now fill this yourself using the 100 income example. Category Calculation Amount Needs 50% of 100   Wants 30% of 100   Savings 20% of 100   Total     Budgeting for 18,000 Income If the monthly income is 18,000: Category Calculation Amount Example use Needs 50% of 18,000 ₹9,000 Rent, food, transport, medicine Wants 30% of 18,000 ₹5,400 Movies, shopping, eating out Savings 20% of 18,000 ₹3,600 Emergency fund, future goal Total   ₹18,000   Instructions: If the monthly income is 18,000, complete the table. Category Calculation Amount Needs 50% of 18,000   Wants 30% of 18,000   Savings 20% of 18,000   Total     Budgeting for 12,500 Income Filled example for 12,500: Category Calculation Amount Needs 50% of 12,500 ₹6,250 Wants 30% of 12,500 ₹3,750 Savings 20% of 12,500 ₹2,500 Total 6,250 + 3,750 + 2,500 ₹12,500 Instructions: Fill this one yourself for an income of 12,500. Category Calculation Amount Needs 50% of 12,500   Wants 30% of 12,500   Savings 20% of 12,500   Total     Reflection Which one feels easier to manage, needs or wants? Which one is more difficult to control? What is one thing you would like to save for? Quick Recap Topic Key Takeaway Needs vs Wants Understand what is essential for living versus what is for comfort. 50-30-20 Rule A simple guide to split income: 50% Needs, 30% Wants, 20% Savings. One line to remember Plan your spending so your money works for you. Closing thought Money planning does not need to be difficult. Even a small step can help us feel more in control.