Budgeting Lesson 1

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What is budgeting?

Budgeting most often refers to the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.

If you don’t have enough money to do everything you would like to do, then you can use this planning process to prioritize your spending and focus your money on the things that are most important to you, including giving to the Lord’s work.

To budget, is to plan one’s spending of money, time, etc.  So, a budget can be a plan, not only for logical spending of money, but also for your time as well.  In the Bible, the word, ‘budget’, is not used, but the word, ‘plan’, is used.  Basically, a ‘budget’ is a ‘plan’.  In “Isaiah 46: 11 the verse says, “Yes, I have spoken. I will certainly bring it to pass.  I have formed a plan, and I will certainly carry it out.”, and in Isaiah 32: 8, ” But the noble man plans noble deeds”.  Our Lord wants us to plan but be sure that it is a ‘noble’ plan.

More than likely, you, along with the help of your parents and teachers, already budget your time.  You probably have time set aside for the time you need to spend on things like your meals, brushing your teeth, taking a shower, going to church, doing your homework, and hopefully doing some chores around the house.  After your set-aside time for things you need, you might have time set aside for the things you want, like videos games, little league, basketball practice, or other things you want to do.

We certainly hope that you have some time set aside for Lutheran Pioneers.

Basically, a budget is a plan.  In our Bible, the word, ‘budget’, is not used, but the word, ‘plan’, is used.  In Isaiah 55:8, God talks to us about our plans and reminds us that “Certainly my (God’s) plans are not your plans, and your ways are not my ways, declares the Lord.”.  in Isaiah in chapter 32, the 8th verse indicates, “But the noble man makes noble plans, and by noble deeds he stands”.  Our Lord wants us to plan but be sure that it is a ‘noble’ plan, and that we understand that His plan is most important.

The Pioneer budgeting lessons will focus on budgeting the way that God would have us do it.

Who or what should have a budget for money?

The simplest answer is that everyone and everything that has money should have a budget for that money.  Here are some specific examples.

Things that should budget their money:

Your parents – Your congregation – Businesses – Governments – Your Pioneer Train and District – Lutheran Pioneers Inc. – and You

Those all seem simple to understand, but there are some things that need a budget (plan) that you might not think of.

A fellowship meal – Your train or district campout – Your pine car derby

Pretty much anything that either receives and/or spends money should have a plan or budget.  Budgeting is part of how we manage God’s blessings to us.

The First Step

Do you know the difference between the word, ‘need‘, and the word, ‘want‘? 

A need is a necessity or a requirement.  It’s something that you require, such as food for your meals, a pencil or pen for school, or a sleeping bag for a campout. 

A want is something that is nice to have but it isn’t a necessity.  For instance, you need food for meals, but you want a new video game system.  You need a place to live but you only want a new bike. 

Sometimes, the difference between a need and a want is a little more confusing because it comes down the type of item or thing that is needed. For instance, the latest championship jersey is actually clothing.  You need clothing, but you only want the latest championship jersey.  You need a toothbrush, but you only want an electric toothbrush. 

This doesn’t mean that you cannot or should not have things that you want.  It just means that when you are budgeting you have to make sure you have the things you need before adding in the things that you want.  Knowing the difference, before creating any type of budget is very important.


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