Financial Well-being Workbook
This module helps learners understand how to manage money wisely and prepare for independent living. It explains the difference between needs and wants, introduces simple budgeting methods like the 50‑30‑20 rule, and shows how saving regularly can build security. Learners also explore tools such as Systematic Investment Plans (SIPs) and the power of compounding to grow their savings over time. The aim is to build confidence in handling finances, avoid debt, and plan for a stable future.
- Introduction
- Session 1: Money Basics
- Session 2: Earning Money
- Session 3: Making a Budget
- Session 4: Saving and Growing Money
- Session 5: Money in Real Life
Introduction
This module helps learners understand how to manage money in everyday life. It uses simple examples and activities to explain financial concepts without jargon. The aim is to build confidence, prepare for independence, and give practical tools to handle money wisely.
Introduction
Money is something we all use every day. But very few of us are taught how to manage it well. This workbook has been made for young people like you, who are preparing to step into the world and handle money on their own. It does not use difficult language or complicated ideas. It uses simple examples, short stories, and activities that connect to real life. This workbook is part of the WeLive Foundation Transition Programme and has been designed to help you feel more confident, more prepared, and more in control of your financial life.
Table of Contents Financial Well-being:
| Session | Title | Focus |
|---|---|---|
| Session 1 | Money Basics | Needs, wants, and the 50-30-20 rule |
| Session 2 | Earning Money | Work, income, salary, stipend, and payslip |
| Session 3 | Making a Budget | Planning monthly spending using income |
| Session 4 | Saving and Growing Money | Savings options, SIP, mutual funds, and compounding |
| Session 5 | Money in Real Life | Digital safety, fraud awareness, and final money plan |
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.
Session 2: Earning Money
This session explains different ways of earning income, including jobs, salaries, stipends, and payslips. Learners understand how money comes in and why it is important to track earnings.
Part 2: Earning Money
Before we start
Money does not appear by itself. It comes from work, skills, time, and effort. Some people earn a salary. Some get a stipend. Some earn daily wages. Some may do small jobs or freelance work. Whatever the source, money usually comes because of some work done.
Session objective
By the end of this session, you will be able to:
Understand what earning means, Know different ways money comes in, Understand salary, stipend, and wages, Read a simple payslip, Connect skills with earning.
A small story
Imran is 18 years old and has just finished a tailoring course. He gets his first stipend from the training programme. He feels excited and wants to spend it quickly on clothes and snacks. Then he hears a simple question. "What if this money is the beginning of something bigger?" Imran starts thinking differently. If he keeps learning and works well, maybe he can earn more later. Maybe this small income can help him build a better future. That is what earning is about. It is not only about money today. It is also about what comes next.
Part 1: What does earning mean?
Earning means getting money in return for work, skill, or effort.
| Type of income | Simple meaning | Example |
|---|---|---|
| Salary | Fixed money every month for a job | Office job, staff job |
| Stipend | Small amount given during training or internship | Skill training stipend |
| Wage | Money paid for daily or hourly work | Daily labour, part-time work |
| Freelance income | Money from short jobs or independent work | Design, writing, tuition |
| Allowance | Money given for a specific purpose | Travel allowance |
Part 2: Why do skills matter?
Skills help people earn better. A person with more practice, more discipline, and more useful skills often gets more work opportunities. That is why training, learning, and good work habits are important.
Part 3: Understanding Your Payslip
A payslip or salary slip is a paper or digital note that shows how much money a person earned and what was deducted from it. It usually tells us: basic pay, allowances, deductions, net salary, which is the final amount actually received.
Filled example:
| Part | Amount |
|---|---|
| Basic pay | ₹10,000 |
| Allowance | ₹2,000 |
| Total earning | ₹12,000 |
| Deduction | ₹1,000 |
| Net salary | ₹11,000 |
Instructions: Fill the table below to calculate the net salary based on the basic pay and allowances provided.
| Part | Amount |
|---|---|
| Basic pay | ₹8,000 |
| Allowance | ₹1,500 |
| Total earning | |
| Deduction | ₹500 |
| Net salary |
Payslip Calculation Practice
If a person earns 12,000 and has 1,000 deduction:
| Step | Calculation | Amount |
|---|---|---|
| Total earning | ₹12,000 | |
| Deduction | ₹1,000 | |
| Net salary | 12,000 - 1,000 | ₹11,000 |
Instructions: If a person earns 15,000 and has 1,500 deduction, calculate the net salary.
| Step | Calculation | Amount |
|---|---|---|
| Total earning | 15,000 | |
| Deduction | 1,500 | |
| Net salary |
Part 4: First income, first plan
When money comes for the first time, it can feel very exciting. But it is better to pause and plan before spending.
Filled example if your first income is 10,000:
| Use | Calculation | Amount |
|---|---|---|
| Needs | 50% of 10,000 | ₹5,000 |
| Wants | 30% of 10,000 | ₹3,000 |
| Savings | 20% of 10,000 | ₹2,000 |
| Total | ₹10,000 |
Instructions: If you get your first income of 10,000, how would you use it according to the 50-30-20 rule?
| Use | Calculation | Amount |
|---|---|---|
| Needs | 50% of 10,000 | |
| Wants | 30% of 10,000 | |
| Savings | 20% of 10,000 | |
| Total |
Reflection
What kind of work do you think you are good at?
What skill would you like to build?
Why is it important to understand your income clearly?
Quick Recap
| Topic | Key Takeaway |
|---|---|
| Earning Types | Money comes from salaries, stipends, or wages based on work and skills. |
| Net Salary | Net salary is the actual amount you take home after all deductions. |
One line to remember
Skills are the tools that help you build your income.
Closing thought
Earning is the starting point of money management. Once we know how money comes in, we can plan it better, save it better, and use it better.
Session 3: Making a Budget
Learners practice planning monthly spending based on income. The session highlights how to balance expenses, avoid overspending, and create a simple budget that works in real life.
Session 3: Making a Budget
Before we start
In Session 1, we learned about earning money. Now let us see how to use that money wisely. A budget is a simple plan for money. It helps us decide in advance where our money should go, so that we are not left wondering where it all went at the end of the month.
Session objective
By the end of this session, you will be able to:
Understand what a budget is, Divide monthly income into different expense categories, Make a simple monthly budget for yourself.
A small story
Meena is 18 years old and has just started a small job after training. She gets ₹20,000 in a month. At first, she feels the money is more than enough for everything. But after a few days, she notices something. She spends a little here, a little there, and by the middle of the month, the money becomes tight. She wonders where it all went. Then someone helps her make a budget. She writes down what is needed, what is wanted, and what should be saved. Suddenly, the money starts making more sense. That is the power of a budget.
Part 1: What is a budget?
A budget is a simple plan for money. It helps us: know how much money is coming in, know how much money is going out, avoid unnecessary spending, save for future needs.
Quick note: A budget does not mean stopping all spending. It means spending with care.
Part 2: Budgeting with the 50-30-20 rule
| Part | Use |
|---|---|
| 50% | Needs |
| 30% | Wants |
| 20% | Savings |
Filled example if the monthly income is 20,000:
| Category | Calculation | Amount | Example use |
|---|---|---|---|
| Needs | 50% of 20,000 | ₹10,000 | Food, rent, travel, phone recharge, medicine |
| Wants | 30% of 20,000 | ₹6,000 | Movies, shopping, eating out, hobbies |
| Savings | 20% of 20,000 | ₹4,000 | Emergency fund, future goal, SIP |
| Total | ₹20,000 |
Instructions: If the monthly income is 20,000, complete the table below.
| Category | Calculation | Amount |
|---|---|---|
| Needs | 50% of 20,000 | |
| Wants | 30% of 20,000 | |
| Savings | 20% of 20,000 | |
| Total |
Part 3: A detailed monthly budget
Now let us go one step further. A budget is not only about broad categories. It also means writing actual expenses category by category.
Filled example:
| Category | Amount |
|---|---|
| Rent | ₹4,000 |
| Food | ₹2,500 |
| Travel | ₹1,000 |
| Health and medicine | ₹500 |
| Electricity and water | ₹500 |
| Mobile recharge | ₹300 |
| Education or skill | ₹700 |
| Entertainment | ₹800 |
| Savings | ₹3,000 |
| Emergency fund | ₹700 |
| Others | ₹0 |
| Total | ₹14,000 |
Instructions: Make your own detailed budget. If you had 20,000 for a month, how would you plan it across categories?
| Category | Amount |
|---|---|
| Rent | |
| Food | |
| Travel | |
| Health and medicine | |
| Electricity and water | |
| Mobile recharge | |
| Education or skill | |
| Entertainment | |
| Savings | |
| Emergency fund | |
| Others | |
| Total |
Part 4: What if money is less?
Sometimes money is not enough for everything we want. That is normal. In such a case, we must choose carefully.
Quick example:
You have 300. You want to buy snacks, recharge your phone, and keep some money aside. What comes first? Phone recharge comes first if it is needed for communication and work. A small amount for food if necessary. Then whatever is left can be saved.
Instructions: Choose the priority option for each situation and explain your choice.
| Situation | First choice | Why? |
|---|---|---|
| Food or movie ticket | ||
| Bus fare or café visit | ||
| Medicine or game top-up | ||
| School fee or shopping |
Reflection
Which expense is easiest to forget?
Which one usually becomes bigger than expected?
What is one small expense you can reduce this month?
Quick Recap
| Topic | Key Takeaway |
|---|---|
| Budgeting | A budget is a plan that gives you control over where your money goes. |
| Prioritization | When money is tight, always pay for your needs before your wants. |
One line to remember
A budget tells your money where to go instead of wondering where it went.
Closing thought
A budget is not only a money sheet. It is a habit. The more we practise it, the easier it becomes. Even a small budget can give us more control, less stress, and better planning.
Session 4: Saving and Growing Money
This session introduces savings options like bank accounts, SIPs, and mutual funds. Learners discover how compounding helps money grow over time and why saving regularly builds security.
Session 4: Saving and Growing Money
Before we start
In Session 3, we made a budget. We saw that some money should go into savings every month. Now let us ask a more interesting question. Once we save money, what can we actually do with it? Can it grow on its own? The answer is yes. And this session will show you how.
Session objective
By the end of this session, you will be able to:
Understand why saving regularly matters, Know safe saving options available in India, Understand what SIP and mutual funds are and how they are connected, Understand how money grows through compounding, Connect saving with a personal goal.
A small story
Asha is 17 years old and lives in a Child Care Institution. She has started getting a small monthly stipend of ₹2,000 after a training programme. At first, she wants to use the money on snacks, clothes, and a few small treats. But she also wants something bigger. She wants to buy a tablet one day so she can study better and attend online classes. A staff member tells her, "You do not need a big amount to start. You only need a regular habit." Asha decides to set aside ₹500 every month. Slowly, she learns that saving is not only about keeping money safe. It is also about preparing for the future.
Part 1: Why do we save?
Saving means keeping money aside for later. We save for emergency needs, study expenses, buying something important, future plans, and peace of mind.
Quick check: Saving is not only for rich people. It is for anyone who wants to be ready for what comes next.
Part 2: Case study - Asha's Plan
Asha's first saving plan
Asha gets ₹2,000 every month. She decides to save ₹500 every month. Her goal is to buy a tablet for study. What is happening here?
She is not saving everything. She is not spending everything. She is building a regular habit with a clear goal.
Instructions: Read the case study and answer the questions below.
| Question | Your answer |
|---|---|
| What is Asha saving for? | |
| How much is she saving every month? | |
| Why is her plan useful? | |
| What other goal could Asha save for? |
Instructions: Talk and share with the group based on the prompts below.
| Prompt | Your answer |
|---|---|
| If you had ₹500 extra, what would you do first? | |
| What is one thing you would like to save for? | |
| What makes saving difficult sometimes? |
Part 3: Safe saving options in India
There are different ways to save money. For CCI youth, simple and safe options are better to begin with. Here are some options that are available across India.
| Option | Simple meaning | Why it may help |
|---|---|---|
| Savings bank account | Money stays safely in a bank | Easy to keep and use when needed |
| Post Office Savings Account | A savings account through India Post | Safe, government-backed, available in most areas |
| Recurring Deposit | A fixed amount deposited every month | Good for building a regular saving habit |
| Fixed Deposit or Time Deposit | Money kept for a fixed period of time | Useful when money is not needed immediately |
| Monthly Income Scheme | A savings option that gives regular income | Helpful when someone wants steady returns |
Instructions: Match the saving option with the most suitable use based on the table above.
| Saving option | Best use |
|---|---|
| Savings bank account | |
| Recurring Deposit | |
| Fixed Deposit | |
| Post Office Savings Account |
Part 4: What is a mutual fund?
A mutual fund is like a common money pool. Many people put their money together in one place. A trained professional called a fund manager handles that money. The fund manager then invests it in different places such as company shares, bonds, and other assets. SEBI, which is the Securities and Exchange Board of India, regulates all mutual funds in India to make sure they are safe and transparent.
Part 5: What is SIP?
SIP means Systematic Investment Plan. SIP is not a separate product. SIP is simply the way you invest into a mutual fund. Instead of putting a large amount at one time, SIP lets you invest a small fixed amount every month. This makes investing regular, affordable, and easy to maintain as a habit.
| Topic | Simple meaning |
|---|---|
| Mutual fund | A common money pool managed by a professional |
| SIP | The way you invest into a mutual fund, in small regular amounts |
| Savings account | Money stays safe and easy to take out anytime |
One line to remember: SIP is the method. Mutual fund is where the money goes.
SIP Investment Calculation
If you invest 500 every month for 2 years:
| Step | Calculation | Amount |
|---|---|---|
| Monthly amount | ₹500 | ₹500 |
| Number of months | 2 years = 24 months | 24 |
| Total invested | 500 x 24 | ₹12,000 |
Instructions: Fill this yourself. If you invest 500 every month for 2 years, how much will you have invested in total?
| Step | Calculation | Amount |
|---|---|---|
| Monthly amount | ₹500 | ₹500 |
| Number of months | 2 years = 24 months | |
| Total invested | 500 x 24 |
Part 6: What is compounding?
Compounding means earning interest not just on the original amount, but also on the interest you have already earned.
Filled example: How compounding works over 2 years
If you invest 20,000 at 10% interest per year:
| Year | Amount at start | Interest earned | Amount at end |
|---|---|---|---|
| Year 1 | ₹20,000 | 10% of 20,000 = ₹2,000 | ₹22,000 |
| Year 2 | ₹22,000 | 10% of 22,000 = ₹2,200 | ₹24,200 |
Instructions: Fill the table yourself. If you invest 20,000 at 10% interest per year, complete the table for 2 years.
| Year | Amount at start | Interest earned | Amount at end |
|---|---|---|---|
| Year 1 | ₹20,000 | 10% of 20,000 = | |
| Year 2 | 10% of 22,000 = |
Part 7: Your own goals
Instructions: Write down your own short-term and long-term saving goals.
| Type of goal | Your answer |
|---|---|
| Short-term goal within 3 years | |
| Long-term goal after 5 years | |
| How much do you want to save every month? | |
| Which saving option would you like to use? |
Reflection
Which saving option feels most simple to you?
What is the difference between saving and investing?
Why is regular saving better than waiting until you have a large amount?
Quick Recap
| Topic | Key Takeaways |
|---|---|
| Saving Tools | Use safe options like Savings Accounts, RDs, and FDs to keep money secure. |
| SIP & Growth | SIP into mutual funds and compounding help your savings grow over time. |
One line to remember
Save regularly, even if it is a small amount, to reach your big goals.
Closing thought
Saving is the first step. Investing is the next step. Both can help us move towards a safer and stronger future. Even ₹100 kept aside every month is a beginning.
Session 5: Money in Real Life
Learners connect financial skills to everyday situations. The session covers digital safety, fraud awareness, and guides them to create a final personal money plan for independent living.
Session 5: Money in Real Life
Before we start
In the last four sessions, we learned about needs and wants, earning money, making a budget, saving, SIP, mutual funds, and compounding. Now let us bring everything together. Money is not just about numbers on paper. It is also about the choices we make every day and the risks we need to watch out for.
Session objective
By the end of this session, you will be able to:
Revise the main ideas from the previous sessions, Make safer money choices in daily life, Identify red flags of financial fraud, Understand the difference between regulated and unregulated financial entities, Understand simple digital payment safety, Create a small personal money plan.
A short story
Rahul is 18 years old and recently started using UPI for small purchases. One day, he gets a message saying he has won a cashback of ₹5,000. The message asks him to click a link and enter his UPI PIN to claim the reward. He feels excited for a moment. Then he remembers something he learned in a session. He stops and checks carefully. The message looks suspicious. It is asking for his PIN. No real cashback ever asks for that. He decides not to click. He shows it to a staff member, who confirms it is a fraud attempt. That one small pause saved him from losing money.
Part 1: Quick revision
Instructions: Fill in the blanks from memory based on what you have learned in previous sessions.
| Question | Your answer |
|---|---|
| Needs are | |
| Wants are | |
| The 50-30-20 rule means | |
| A payslip shows | |
| SIP means | |
| A mutual fund is | |
| Compounding means |
Part 2: Digital money safety
Today, most people use UPI and mobile payments. That is useful and fast. But we must stay careful.
Important safety rules:
Instructions: Review each situation and write down the safe action you should take.
| Situation | What should you do? |
|---|---|
| You get a message asking for your UPI PIN | |
| You receive a link saying you won a prize | |
| Someone calls saying they are from your bank | |
| The payment receiver name looks unfamiliar | |
| A stranger offers to help you with UPI |
Part 3: Red flags of financial fraud
Fraud does not always look obvious. Sometimes it looks like a great opportunity.
| Red flag | What it looks like |
|---|---|
| Very high or guaranteed returns | "We will give you 50% returns every month, guaranteed" |
| Pressure to act immediately | "Last few hours left, invest now or lose the offer" |
| Money asked to a personal bank account | "Transfer to this personal account, not a company account" |
| Payment asked to claim a gift or job | "Pay ₹500 to unlock your prize" or "Pay ₹1,000 to confirm your job offer" |
| No official paperwork or registration | No receipt, no official name, no registration number |
| Promises that sound too good to be true | If it sounds unbelievably good, it usually is not real |
Instructions: Read each situation and decide if it represents a safe opportunity or a red flag for fraud.
| Situation | Safe or Red flag? |
|---|---|
| A bank sends an official email with your account details | |
| Someone on WhatsApp offers 40% monthly returns | |
| A company asks you to pay to get a job offer | |
| An official SIP through a SEBI-registered app | |
| A stranger asks you to transfer money to their personal account |
Part 4: Regulated vs unregulated entities
When we invest or borrow money, it is important to use organisations that are officially approved and monitored by the government. These are called regulated entities.
| Type | Simple meaning | Examples |
|---|---|---|
| Regulated entity | Approved and monitored by a government body | Banks monitored by RBI, mutual funds monitored by SEBI, insurance companies monitored by IRDAI |
| Unregulated entity | Not approved or monitored by any government body | Chit funds with no registration, informal money lenders |
Reflection
What is one new thing you learned about money in this module?
What is one change you will make in how you handle money?
Who can you talk to if you are unsure about a financial decision?
Quick Recap
| Topic | Key Takeaways |
|---|---|
| Digital Safety | Never share your PIN, OTP, or click suspicious links. |
| Fraud Prevention | Watch for red flags like "guaranteed high returns" or "payment for jobs." |
| Regulated Entities | Always use regulated institutions to keep your money safe. |
One line to remember
Stay alert and use regulated institutions to keep your money safe.
Closing thought
Managing money is a lifelong skill. It does not need to be perfect from day one. Every small step you take today builds a stronger and safer tomorrow.