Money

CBC Grade 5 Mathematics — Money

Lesson Objectives

By the end of this topic, a learner should be able to:

• Explain what a budget is and why it matters
• Prepare a simple budget of up to five items
• Explain what tax is and why it matters to government
• Identify services provided by banks
• Identify factors to consider when saving money wisely

Money

Money comes in and money goes out. Planning it means you do not run short before the month ends.

a) What a budget is

A budget is a plan for money.

It lists the money coming in, and the money going out.

Then it shows what is left.

b) Making a budget

Item	Amount
Money received	2 000
Food	800
Transport	400
Books	300
Total spent	1 500
Left over	500

Write down what comes in first.

List everything going out, one line each.

Add up what goes out, then take it from what comes in.

c) When it does not balance

The money going out may be more than the money coming in.

Then the budget does not work. You must remove something before you start, not after you have spent it.

Take out a want before you take out a need. Food and school fees come before sweets and outings.

d) Why a budget matters

It stops you running out of money before the month ends.

It shows you where your money actually goes, which is often a surprise.

It helps you save. Saving becomes a planned item, not just whatever happens to be left.

e) What tax is

A tax is money paid to the government.

Everyone who earns or buys pays some tax.

The government uses it to run the country. Schools, hospitals, roads, the police and the army are all paid for by taxes.

Without taxes, none of these would exist.

f) Services banks provide

A bank keeps money safe.

Service	What it does
Savings account	keeps money safe and adds interest
Current account	for money you use often
Loans	lends money to be paid back later
Money transfer	sends money to another person
Safe custody	keeps important documents safe

Money in a bank is safer than money at home. It cannot be lost or stolen as easily.

g) Saving wisely

Save a little regularly rather than a lot once. Small amounts add up.

Decide what you are saving for. A goal makes saving much easier.

Keep savings somewhere you cannot spend them easily.

Save before you spend, not after. What is left at the end is usually nothing.

h) Where this is used

A family plans the month. A shopkeeper plans stock. A learner saves for something they want. Everyone who buys anything pays tax.

:::checkpoint Check yourself

1. What is a budget?
2. The money going out is more than the money coming in. What should you do?
3. Name two services a bank provides.
4. Why is it better to save before you spend? :::

Definitions

• Budget — a plan for how money will be spent, made in advance.
• Tax — money collected by government to fund public services.
• Bank — an institution offering deposits, withdrawals, loans, and savings.

Must Remember

1. A budget is made before spending happens.
2. Add every item's cost to find the budget total, checked by re-adding.
3. Tax funds services that benefit the public generally.
4. Saving wisely means a clear goal and consistency, not just leftovers.

Conclusion

Budgeting, tax, banks, and saving are all connected by thinking ahead about money.