Level 3 · ages 13–15OECD PMSpend
The 50-30-20 budget
🎯 Goal: Know to split income: 50% needs, 30% wants, 20% saving/investing — and compute each part.
The 50-30-20 rule: 50% for needs (housing, transport), 30% for wants (fun), 20% for saving/investing.
Let’s explore
🥧
Split income into 3 parts at 50/30/20.
🧮
Each part = Income × ratio ÷ 100. For 2,000,000d: 1,000,000 / 600,000 / 400,000.
🎯
The 20% saving is "paying your future self".
Practice activity
🧮 Income 2,000,000d, split 50-30-20 — how much each?
Worked example: 2,000,000d: needs 50% = 1,000,000d, wants 30% = 600,000d, saving 20% = 400,000d. Adds to 2,000,000d.
Quick quiz
1. The 50-30-20 rule is?
→ 50% needs, 30% wants, 20% saving
2. Income 2M, the needs part (50%)?
→ 1,000,000d
3. Income 2M, the saving part (20%)?
→ 400,000d
4. Each part is computed by?
→ Income × ratio ÷ 100
5. The 30% part is for?
→ Wants (fun)
6. The 20% saving is also called?
→ Paying your future self
🎯 Real-life mission
Apply the 50-30-20 rule to your pocket money this month.
‹ Basic financial service fees · Fixed and variable costs ›