- Definition
A balanced budget means you have enough money coming in to cover all your expenses, or even have a little extra left over.
If your child earns $100 a month and plans to spend $70 on outings and save $30, they have a balanced budget.
How to teach this in 30 seconds
Try this analogy: A balanced budget is like making sure the money you get from an allowance or job is enough to cover the snacks, games, or movie tickets you want to buy.
Ask your child: If you earned $50 this week, how would you plan to spend it?
Common mix-up: Many think a budget is just about cutting spending. A balanced budget is really about planning so your spending doesn't go over your income.
Examples
- A school club raises $200 for a pizza party and spends exactly $200 on pizza and drinks.
- Saving $100 from a summer job and only spending $80 on a new video game, leaving $20 in savings.
balanced budget is a term used in Ontario’s Kindergarten to Grade 8 curriculum.
Where this shows up
The descriptions on this page are SmartStudy’s own original, plain-language writing — not the Ministry’s wording. They are aligned to the Ontario Curriculum, © King’s Printer for Ontario. For the Ministry’s official wording, see the source link below. SmartStudy is an independent service and is not affiliated with, endorsed by, or sponsored by the Government of Ontario or the Ministry of Education. Ontario Curriculum and Resources ↗
