ENTREPRENEURSHIP

Subtopic: INCOME AND BUDGETING (Pre-technical)

These notes are for young Kenyans (about 13 years old). You will learn what income is, why a budget helps, how to make a simple budget, and easy ways to earn and save money safely in Kenya.

1. What is INCOME?

Income is the money you get. For teens this can be:

• Allowance from parents or guardians (pocket money).
• Money earned from a small job or business — e.g., selling snacks, tutoring, or helping in a family business.
• Gifts or money from relatives on special days.

2. What is BUDGETING?

Budgeting means planning how to use your money so you can pay for the things you need and save for the things you want.

Why budget?

• Helps you avoid running out of money.
• Shows how much you can save for a goal (like a phone or school trip).
• Makes it easier to start a small business and manage profits.

3. Needs vs Wants (Easy rules)

- Needs: things you must have (school fees, books, food).
- Wants: things that are nice but not necessary (sweets, extra phone data).
Always pay needs first, then decide how much to save and spend on wants.

4. How to make a simple monthly budget (step-by-step)

1. Write down all income (how much money you get each month). Example: 2,000 KES allowance.
2. List your expenses (school lunch, kerosene, airtime, snacks, transport).
3. Decide how much to save — try to save at least 10% if you can.
4. Give each expense an amount and check that total expenses + savings do not exceed income.
5. Track actual spending each week and adjust the plan if needed.

Example: Monthly budget for a teen (KES)

5. Simple visual: Savings progress

If you save 200 KES out of 2,000 KES, that's 10% saved.

6. Ways a teen can earn money in Kenya (safe & legal)

• Sell homemade snacks or cold juices near the market (with parent permission and safe food handling).
• Tutoring younger classmates in subjects you are good at.
• Make and sell crafts, beadwork, or phone charms.
• Offer phone charging or printing services in your neighbourhood (where electric supply and safety are OK).
• Assist small shops with packing or delivery (with permission).
• Use M-Pesa or a parent’s bank account to receive payments safely.

7. Safe money habits

• Keep money in a safe place or with a trusted adult—do not carry large sums.
• Use M-Pesa for payments and transfers when possible; learn how to protect your PIN.
• Write down every income and expense in a small notebook or phone note.
• Make a clear saving goal (e.g., "Save 3,000 KES in 3 months for a school trip").

8. Small activity (Try this every week)

1) Write down all money you received this week.
2) List everything you spent money on.
3) Decide one thing you can cut back on to save KES 50–100.
4) Put saved money into a jar or M-Pesa savings until you reach a goal.

Try this now: Create a one-week budget for your pocket money. Track where every coin goes. Share your results with a parent or teacher and set one saving goal for the month.

(Notes tailored for Kenyan teens. Always ask an adult before starting a business or handling money.)