Co-funded by the Erasmus+ Programme of the European Union Project No.: 2024-1-PL01-KA220-YOU-000251498
GAMEY Project: Gamified Approach to Money Education for Youth
MODULE 1: Basics of Personal Finance, Budgeting, saving
Let's go!
Index of content
- Module’s goals
- What will you learn?
- Learning objectives
- Theoretical content- Personal finance
- What is budgeting? - Income and expenses - Why savings matters? - What is debt?
- Reflection quiz
- References
Continue
Module goal
Would you like to learn more about personal finance and have better overview of your budget? This module introduces key concepts of personal finance in a youth-friendly way, enabling you to build habits that support independence, financial awareness, and resilience. This module is designed to help you develop a solid understanding of personal finance to manage income, expenses, and savings effectively.
Continue
What will you learn?
In this module you will learn about:
- Managing your income and expenses.
- Setting up a realistic budget.
- Creating savings goals.
- Debt and credit.
- Using digital tools to track your finances.
Continue
Learning objectives
After this module you will know how to:
- Define key terms: budget, income, debt, emergency fund.
- Apply budgeting rules to real-life scenarios.
- Track expenses using budgeting tools.
- Reflect on financial decisions.
Continue
Personal finance
Continue
Continue
What is personal finance?
Personal finance refers to the management of individual or household finances, including budgeting, saving, investing, and planning for future expenses.
Understanding personal finance helps individuals make informed decisions about money and build a secure financial future.
It also includes setting financial goals, creating budgets, and managing risks.
Continue
Key terms
Income
Emergency fund
Budget
Debt
Is almost anything you receive in exchange for sales or services and most of it is taxable but there are a few exceptions. Examples: Salary, investment
Is an estimation of revenue, expenses, or changes in finances over a specified future period and is usually compiled and re-evaluated on a periodic basis one year or a month. Examples: Personal budget
Is a financial obligation undertaken by a borrower that must be repaid to the lender, usually with an additional payment of interest. Examples: Car loan, mortage
Is a cash reserve designed to cover sudden financial expenses so you don’t have to rely on your regular savings account, credit cards, or loans. Examples: Repairing your car, Emergency home repairs
Continue
Personal finance in real life
We learned that personal finance refers to the management of individual or household financial activities, including earning, budgeting, saving, spending, and planning for future expenses. Let's take Rob's Example: Rob is 21 years old and has just moved to a new city to start his first full-time job. He earns 1.800,00 € per month and needs to manage rent, groceries, transport, entertainment, and personal goals. Every euro Rob earns or spends is part of his personal finance decisions.
Continue
Budgeting
Continue
What is budgeting?
Budgeting is the process of creating a plan to manage income and expenses over a specific period. A budget helps individuals control their spending, save for goals, and ensure they are living within their means. It promotes financial awareness and discipline and is a core tool for managing personal finance effectively.
Continue
Key benefits of budgeting
Continue
How to create a basic budget (step-by-step)?
- Write down your total monthly income (e.g., 800,00 €).
- List fixed expenses: Rent (300,00 €), Transport (40,00 €), Phone (20,00 €).
- Add variable expenses: Food (200,00 €), Fun (60,00 €), Clothes (30,00 €).
- Set savings goal: Emergency fund (50,00 €).
- Adjust so your expenses don’t exceed your income.
✅ Total: 800,00 € = Balanced
Continue
Popular budgeting rules overview
Description
Description
Every euro of income is assigned to a specific purpose — income minus expenses must equal zero. Rob’s Example: Rob assigns every part of his 1.800,00 € to categories like rent, bills, savings, and groceries.There is no unallocated money.
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Cash or digital “envelopes” are created for spending categories. When an envelope is empty, spending stops. Rob’s Example: Rob sets a 200,00 € envelope for entertainment. After he spends it, he stops going out or chooses free activities.
Description
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Allocate 70% to living expenses, 20% to savings, and 10% to debt or donations. Rob’s Example: Rob plans: Living: 1.260,00 € (70%) Savings: 360,00 € (20%) Extra loan repayment: 180,00 € (10%)
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Title
50/30/20 Rule
Write a brief description here
Title
Envelope system
Write a brief description here
Title
70/20/10 Rule
Write a brief description here
There are several budgeting methods to help organize money. The best method depends on your income, expenses, and savings goals.
Continue
Income vs. Expenses
Continue
Income is all the money you receive, where expenses are all the money you spend. Managing the difference is the key to saving.
Understanding the flow of money is critical in personal finance. Income includes any money received, such as wages, scholarships, government aid, or freelance work. Expenses are all the costs an individual incurs.
Continue
Types of expenses
Variable expenses
Fixed expenses
Remain consistent each month. Is an expense whose total amount does not change when there is an increase in an activity such as sales or production. Example: Rent, phone bills, etc.
Fluctuate based on usage or lifestyle. They are costs that change over time, such as groceries or movie tickets. Example: Groceries, entertainment, etc.
Managing expenses involves identifying unnecessary spending and adjusting to stay within budget.
Continue
Here are two simple and free apps that are perfect for young people to start tracking their expenses
Goodbudget
Monefy
What it is - A user-friendly expense tracker that lets users record income and spending with just a few taps. Why it works - Color-coded categories (like food, rent, fun) make it super easy to visualize spending habits. Best feature - Quick entry and overview of daily or monthly expenses through charts. Ideal for - Beginners who want a clear, clutter-free app to stay aware of where their money goes. Available on - Android, iOS
What it is - A digital version of the envelope budgeting method, where money is “placed” into different spending categories. Why it works - It teaches intentional spending by dividing money before it’s spent. Best feature - Great for goal-setting and planning both needs and wants; ideal for budgeting with limited income. Ideal for - Learners practicing saving habits and planning for future expenses (like Rob's trip). Available on - Android, iOS, and Web
Continue
Why savings matter?
Continue
Savings protect you from financial shocks and help you reach goals.
Let's take a look to Rob's situation
His goal: Rob wants to save 1.000,00 € in 6 months to go on a backpacking trip. He needs to save roughly 170,00 € each month. Setback Example: Rob’s bike gets stolen. If he had no savings, he’d either walk or borrow money. Because Rob has been saving, he uses 120,00 € from his emergency fund to buy a second-hand bike — avoiding debt and stress. Saving even 50,00 €/month adds up over time and gives Rob freedom to make choices.
Continue
Types of savings
Emergency fund
Short-term savings
Covers unplanned costs (e.g., medical bills, car repairs).
For upcoming goals (e.g., phone, holiday).
Saving early and consistently allows small amounts to grow over time due to the power of habit (and interest, if applicable).
Long-term savings
For major investments (e.g., education, house, retirement).
Continue
Saving is setting aside a portion of income for future use. It acts as a financial cushion and supports long-term security. Regular saving can protect individuals from unexpected emergencies and support planned goals such as education, travel, or starting a business.
Continue
What is debt?
Continue
Debt occurs when money is borrowed with the obligation to repay, often with interest. While debt can be a useful financial tool, it becomes risky when not managed properly. Young people are especially vulnerable to accumulating debt without understanding its long-term effects.
Continue
Key terms
Debt should always be tied to a purpose and a repayment plan.
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Interest
Principal
Repayment
Extra cost paid for borrowing.
Scheduled or flexible payments over time.
Original amount borrowed.
Continue
Good debt vs. bad debt
Not all debt is harmful. Good debt is used to invest in your future (e.g., student loans, affordable business loans). Bad debt usually funds unnecessary consumption and carries high interest (e.g., payday loans, impulse credit card purchases).
Risks of bad debt
Continue
Not all debt is harmful, but knowing the difference is key.
If we look Rob as a example...
✅ Good Debt: Taking a student loan helped Rob complete his IT certification and land his current job.
Buying a used car for commuting when he moved helped him increase job access. ❌ Bad Debt: Rob once used a buy-now-pay-later service to buy clothes and forgot the due date — he paid 40,00 € in late fees.
If you were Rob, what rules would you set for yourself before taking on debt?
Continue
Key takeaways
Continue
Budgeting is planning.Saving is security. Debt should be managed wisely.
Title
Summary of key learnings
Use this side to give more information about a topic.
Subtitle
Track expenses.Use a tool. Start saving small. Review monthly. Plan for surprises.
By learning how to plan, track, and reflect on financial decisions, you are empowered to take control of your money with confidence.
Title
Top 5 budgeting tips
Use this side to give more information about a topic.
Subtitle
These foundational skills in personal finance will support long-term independence, reduce financial stress, and build a habit of responsible budgeting and saving.
Track your spending for 7 days.Choose a budgeting rule to try.
Title
Challenge for the week
Use this side to give more information about a topic.
Subtitle
Continue
Reflection quiz
Continue
What have I learned?
Continue
What have I learned?
Continue
What have I learned?
Continue
What have I learned?
Continue
What have I learned?
Continue
Glossary
Continue
1. Personal Finance
How you manage your money, including earning, spending, saving, and budgeting.
Example: Rob plans how to use his monthly income to cover rent and savings.
________________________________________
2. Budget
A plan for how you spend and save your money over a period of time.
Example: Rob uses a monthly budget to stay on track and avoid overspending.
________________________________________
3. Income
Money you receive from work, gifts, government support, or side jobs.
Example: Rob earns 1.800,00 €/month from his job and weekend gigs.
________________________________________
4. Expenses
Money you spend on goods and services. Example: Rob’s fixed expense is rent; his food costs change weekly.
________________________________________
Continue
5. Needs vs. Wants • Needs: Essential for living (e.g., food, housing)
• Wants: Things you enjoy but can live without (e.g., concerts, takeout)
Example: Rob spends 700,00 € on rent (need) and 60,00 € on cinema (want).
________________________________________
6. Saving
Setting aside money for future use or emergencies.
Example: Rob saves 170,00 €/month to reach a 1.000,00 € travel goal.
________________________________________
7. Emergency Fund
Money saved to cover unexpected expenses like medical bills or repairs.
Example: Rob’s fridge broke, but he used 150,00 € from his emergency fund.
________________________________________
8. Debt
Money you borrow and must pay back, usually with interest.
Example: Rob used a credit card once and had to pay extra due to interest.
________________________________________
9. Interest
The cost of borrowing money or the reward for saving it.
Example: Rob repays 550,00 € on a 500,00 € loan — 50,00 € is interest.
Continue
Resources
- Investopedia. (2025). Emergency fund. https://www.investopedia.com/terms/e/emergency_fund.asp
- Investopedia. (2025). Debt. https://www.investopedia.com/terms/d/debt.asp
- Investopedia. (2025). Income. https://www.investopedia.com/terms/i/income.asp
- Investopedia. (2025). Budget. https://www.investopedia.com/terms/b/budget.asp#toc-what-is-a-budget
- Accountingcoach. (2025). Fixed expenses. https://www.accountingcoach.com/blog/what-is-a-fixed-expense
- Nerdwallet. (2025). Variable expenses. https://www.nerdwallet.com/article/finance/what-are-variable-expenses
Continue
Co-funded by the Erasmus+ Programme of the European Union Project No.: 2024-1-PL01-KA220-YOU-000251498
Thank you!
Start
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Transcript
Co-funded by the Erasmus+ Programme of the European Union Project No.: 2024-1-PL01-KA220-YOU-000251498
GAMEY Project: Gamified Approach to Money Education for Youth
MODULE 1: Basics of Personal Finance, Budgeting, saving
Let's go!
Index of content
- Module’s goals
- What will you learn?
- Learning objectives
- Theoretical content- Personal finance
- What is budgeting? - Income and expenses - Why savings matters? - What is debt?Continue
Module goal
Would you like to learn more about personal finance and have better overview of your budget? This module introduces key concepts of personal finance in a youth-friendly way, enabling you to build habits that support independence, financial awareness, and resilience. This module is designed to help you develop a solid understanding of personal finance to manage income, expenses, and savings effectively.
Continue
What will you learn?
In this module you will learn about:
Continue
Learning objectives
After this module you will know how to:
Continue
Personal finance
Continue
Continue
What is personal finance?
Personal finance refers to the management of individual or household finances, including budgeting, saving, investing, and planning for future expenses.
Understanding personal finance helps individuals make informed decisions about money and build a secure financial future.
It also includes setting financial goals, creating budgets, and managing risks.
Continue
Key terms
Income
Emergency fund
Budget
Debt
Is almost anything you receive in exchange for sales or services and most of it is taxable but there are a few exceptions. Examples: Salary, investment
Is an estimation of revenue, expenses, or changes in finances over a specified future period and is usually compiled and re-evaluated on a periodic basis one year or a month. Examples: Personal budget
Is a financial obligation undertaken by a borrower that must be repaid to the lender, usually with an additional payment of interest. Examples: Car loan, mortage
Is a cash reserve designed to cover sudden financial expenses so you don’t have to rely on your regular savings account, credit cards, or loans. Examples: Repairing your car, Emergency home repairs
Continue
Personal finance in real life
We learned that personal finance refers to the management of individual or household financial activities, including earning, budgeting, saving, spending, and planning for future expenses. Let's take Rob's Example: Rob is 21 years old and has just moved to a new city to start his first full-time job. He earns 1.800,00 € per month and needs to manage rent, groceries, transport, entertainment, and personal goals. Every euro Rob earns or spends is part of his personal finance decisions.
Continue
Budgeting
Continue
What is budgeting?
Budgeting is the process of creating a plan to manage income and expenses over a specific period. A budget helps individuals control their spending, save for goals, and ensure they are living within their means. It promotes financial awareness and discipline and is a core tool for managing personal finance effectively.
Continue
Key benefits of budgeting
Continue
How to create a basic budget (step-by-step)?
- Write down your total monthly income (e.g., 800,00 €).
- List fixed expenses: Rent (300,00 €), Transport (40,00 €), Phone (20,00 €).
- Add variable expenses: Food (200,00 €), Fun (60,00 €), Clothes (30,00 €).
- Set savings goal: Emergency fund (50,00 €).
- Adjust so your expenses don’t exceed your income.
✅ Total: 800,00 € = BalancedContinue
Popular budgeting rules overview
Description
Description
Every euro of income is assigned to a specific purpose — income minus expenses must equal zero. Rob’s Example: Rob assigns every part of his 1.800,00 € to categories like rent, bills, savings, and groceries.There is no unallocated money.
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Cash or digital “envelopes” are created for spending categories. When an envelope is empty, spending stops. Rob’s Example: Rob sets a 200,00 € envelope for entertainment. After he spends it, he stops going out or chooses free activities.
Description
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Allocate 70% to living expenses, 20% to savings, and 10% to debt or donations. Rob’s Example: Rob plans: Living: 1.260,00 € (70%) Savings: 360,00 € (20%) Extra loan repayment: 180,00 € (10%)
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Title
50/30/20 Rule
Write a brief description here
Title
Envelope system
Write a brief description here
Title
70/20/10 Rule
Write a brief description here
There are several budgeting methods to help organize money. The best method depends on your income, expenses, and savings goals.
Continue
Income vs. Expenses
Continue
Income is all the money you receive, where expenses are all the money you spend. Managing the difference is the key to saving.
Understanding the flow of money is critical in personal finance. Income includes any money received, such as wages, scholarships, government aid, or freelance work. Expenses are all the costs an individual incurs.
Continue
Types of expenses
Variable expenses
Fixed expenses
Remain consistent each month. Is an expense whose total amount does not change when there is an increase in an activity such as sales or production. Example: Rent, phone bills, etc.
Fluctuate based on usage or lifestyle. They are costs that change over time, such as groceries or movie tickets. Example: Groceries, entertainment, etc.
Managing expenses involves identifying unnecessary spending and adjusting to stay within budget.
Continue
Here are two simple and free apps that are perfect for young people to start tracking their expenses
Goodbudget
Monefy
What it is - A user-friendly expense tracker that lets users record income and spending with just a few taps. Why it works - Color-coded categories (like food, rent, fun) make it super easy to visualize spending habits. Best feature - Quick entry and overview of daily or monthly expenses through charts. Ideal for - Beginners who want a clear, clutter-free app to stay aware of where their money goes. Available on - Android, iOS
What it is - A digital version of the envelope budgeting method, where money is “placed” into different spending categories. Why it works - It teaches intentional spending by dividing money before it’s spent. Best feature - Great for goal-setting and planning both needs and wants; ideal for budgeting with limited income. Ideal for - Learners practicing saving habits and planning for future expenses (like Rob's trip). Available on - Android, iOS, and Web
Continue
Why savings matter?
Continue
Savings protect you from financial shocks and help you reach goals.
Let's take a look to Rob's situation
His goal: Rob wants to save 1.000,00 € in 6 months to go on a backpacking trip. He needs to save roughly 170,00 € each month. Setback Example: Rob’s bike gets stolen. If he had no savings, he’d either walk or borrow money. Because Rob has been saving, he uses 120,00 € from his emergency fund to buy a second-hand bike — avoiding debt and stress. Saving even 50,00 €/month adds up over time and gives Rob freedom to make choices.
Continue
Types of savings
Emergency fund
Short-term savings
Covers unplanned costs (e.g., medical bills, car repairs).
For upcoming goals (e.g., phone, holiday).
Saving early and consistently allows small amounts to grow over time due to the power of habit (and interest, if applicable).
Long-term savings
For major investments (e.g., education, house, retirement).
Continue
Saving is setting aside a portion of income for future use. It acts as a financial cushion and supports long-term security. Regular saving can protect individuals from unexpected emergencies and support planned goals such as education, travel, or starting a business.
Continue
What is debt?
Continue
Debt occurs when money is borrowed with the obligation to repay, often with interest. While debt can be a useful financial tool, it becomes risky when not managed properly. Young people are especially vulnerable to accumulating debt without understanding its long-term effects.
Continue
Key terms
Debt should always be tied to a purpose and a repayment plan.
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Use this side of the card to provide more information about a topic. Focus on one concept. Make learning and communication more efficient.
Interest
Principal
Repayment
Extra cost paid for borrowing.
Scheduled or flexible payments over time.
Original amount borrowed.
Continue
Good debt vs. bad debt
Not all debt is harmful. Good debt is used to invest in your future (e.g., student loans, affordable business loans). Bad debt usually funds unnecessary consumption and carries high interest (e.g., payday loans, impulse credit card purchases).
Risks of bad debt
Continue
Not all debt is harmful, but knowing the difference is key.
If we look Rob as a example...
✅ Good Debt: Taking a student loan helped Rob complete his IT certification and land his current job. Buying a used car for commuting when he moved helped him increase job access. ❌ Bad Debt: Rob once used a buy-now-pay-later service to buy clothes and forgot the due date — he paid 40,00 € in late fees.
If you were Rob, what rules would you set for yourself before taking on debt?
Continue
Key takeaways
Continue
Budgeting is planning.Saving is security. Debt should be managed wisely.
Title
Summary of key learnings
Use this side to give more information about a topic.
Subtitle
Track expenses.Use a tool. Start saving small. Review monthly. Plan for surprises.
By learning how to plan, track, and reflect on financial decisions, you are empowered to take control of your money with confidence.
Title
Top 5 budgeting tips
Use this side to give more information about a topic.
Subtitle
These foundational skills in personal finance will support long-term independence, reduce financial stress, and build a habit of responsible budgeting and saving.
Track your spending for 7 days.Choose a budgeting rule to try.
Title
Challenge for the week
Use this side to give more information about a topic.
Subtitle
Continue
Reflection quiz
Continue
What have I learned?
Continue
What have I learned?
Continue
What have I learned?
Continue
What have I learned?
Continue
What have I learned?
Continue
Glossary
Continue
1. Personal Finance How you manage your money, including earning, spending, saving, and budgeting. Example: Rob plans how to use his monthly income to cover rent and savings. ________________________________________ 2. Budget A plan for how you spend and save your money over a period of time. Example: Rob uses a monthly budget to stay on track and avoid overspending. ________________________________________ 3. Income Money you receive from work, gifts, government support, or side jobs. Example: Rob earns 1.800,00 €/month from his job and weekend gigs. ________________________________________ 4. Expenses Money you spend on goods and services. Example: Rob’s fixed expense is rent; his food costs change weekly. ________________________________________
Continue
5. Needs vs. Wants • Needs: Essential for living (e.g., food, housing) • Wants: Things you enjoy but can live without (e.g., concerts, takeout) Example: Rob spends 700,00 € on rent (need) and 60,00 € on cinema (want). ________________________________________ 6. Saving Setting aside money for future use or emergencies. Example: Rob saves 170,00 €/month to reach a 1.000,00 € travel goal. ________________________________________ 7. Emergency Fund Money saved to cover unexpected expenses like medical bills or repairs. Example: Rob’s fridge broke, but he used 150,00 € from his emergency fund. ________________________________________ 8. Debt Money you borrow and must pay back, usually with interest. Example: Rob used a credit card once and had to pay extra due to interest. ________________________________________ 9. Interest The cost of borrowing money or the reward for saving it. Example: Rob repays 550,00 € on a 500,00 € loan — 50,00 € is interest.
Continue
Resources
Continue
Co-funded by the Erasmus+ Programme of the European Union Project No.: 2024-1-PL01-KA220-YOU-000251498
Thank you!
Start