Do You Have Enough Money to Buy It?

You see something you want to buy.

Maybe it is a toy, a book, or a snack.

You look at the price.

Then you look at the money you have.

Before you buy anything, there is one very important question:

DO I HAVE ENOUGH MONEY TO BUY IT?

Let's learn how to find out.

First, Look at the Price

A price tells you how much money something costs.

A book might cost $4. A toy might cost $7. A snack might cost $2.

The price answers this question:

HOW MUCH MONEY DO I NEED TO BUY THIS?

Before you buy something, check the price.

Next, Look at How Much Money You Have

Imagine you have $8.

You see something that costs $6.

Now you know two things: how much money you have and how much the item costs.

DO I HAVE ENOUGH MONEY TO BUY IT?

Let's Check

You have $8. The item costs $6.

Is $8 enough to pay $6?

YES.

$8 is more than $6, so you have enough money.

But there is one more question:

HOW MUCH MONEY WILL I HAVE LEFT?

What Will Be Left?

You started with $8 and you spend $6.

Now subtract, or take away, $6 from $8:

$8 - $6 = $2

You will have $2 left.

MONEY YOU HAVE: $8 | PRICE: $6 | MONEY LEFT: $2

You had enough money to buy the item, and you still have $2 after the purchase.

Meet Lucas

Lucas is 7 years old. He has $8 from his birthday.

One day, Lucas goes to the store with his mom and sees a small building set. The price is $6.

"I can buy it!" Lucas says.

His mom smiles. "Maybe. Let's check your money first."

Lucas has $8. The building set costs $6.

"Do you have enough money to buy it?" Mom asks.

"Yes. I have $8, and it costs $6."

"Good. Now what will you have left?"

$8 - $6 = $2

"I'll have $2 left!" Lucas says.

Now Lucas knows the price, knows he has enough, and knows what will be left. Now he can make his choice.

Step 1: Check the Price

Ask: How much does it cost?

Lucas's building set costs $6.

Step 2: Check Your Money

Ask: How much money do I have?

Lucas has $8.

Step 3: Ask, "Do I Have Enough Money?"

Lucas has $8. The price is $6.

Is $8 enough to pay $6? Yes. Lucas has enough money.

Step 4: Find Out What Will Be Left

Take the $6 price away from Lucas's $8.

$8 - $6 = $2

If Lucas buys the building set, he will have $2 left.

Step 5: Make Your Choice

Lucas has enough money. But does that mean he has to buy the building set?

NO.

Having enough money means: I can buy it. It does not mean: I have to buy it.

Lucas could buy the building set, or he could keep his $8 for later. Both are choices.

HAVING ENOUGH MONEY GIVES YOU A CHOICE.

"Can I Buy It?" and "Do I Want to Buy It?" Are Different

First ask: Can I buy it? That means: Do I have enough money?

Then ask: Do I want to use my money for this?

Imagine you have $10 and a toy costs $4.

You have enough money. If you buy it:

$10 - $4 = $6

You would have $6 left.

You can buy it, but you might still decide to save your money. That is okay too.

Knowing that you can buy something does not mean you have to buy it.

What If You Do Not Have Enough Money?

Imagine you have $5 and a toy costs $7.

Do you have enough money?

NO.

You need $2 more.

YOU DO NOT HAVE ENOUGH MONEY YET.

You could keep your $5 and save more. Later, you can check again.

What If You Have Exactly Enough?

Imagine you have $6 and something costs $6.

Do you have enough money? Yes.

$6 - $6 = $0

You would have $0 left.

You can pay the price, but all of your money would be used.

DO I WANT TO SPEND ALL OF MY MONEY ON THIS?

Maybe yes. Maybe no. The important part is knowing what will happen before you choose.

Three Questions to Ask Before You Buy

Whenever you want to buy something, ask:

1. WHAT IS THE PRICE? How much does it cost?
2. DO I HAVE ENOUGH MONEY? Look at the price and the money you have.
3. WHAT WILL I HAVE LEFT? Take the price away from your money.

PRICE -> ENOUGH MONEY? -> WHAT'S LEFT?

These three questions can help you think before you spend.

Let's Practice

EXAMPLE 1: You have $9. A book costs $5. Do you have enough? Yes.

$9 - $5 = $4 | $4 LEFT

EXAMPLE 2: You have $4. A toy costs $6. Do you have enough? No. You need $2 more.

EXAMPLE 3: You have $7. A game costs $7. Do you have enough? Yes.

$7 - $7 = $0 | $0 LEFT

EXAMPLE 4: You have $10. A snack costs $3. Do you have enough? Yes.

$10 - $3 = $7 | $7 LEFT

Let's Check Your Answers

1. Yes. $8 - $5 = $3. You have $3 left.
2. No. $3 is not enough to pay $6.
3. Yes. $10 - $8 = $2. You have $2 left.
4. Yes. $5 - $5 = $0. You have $0 left.

How did you do? If you missed one, that is okay. You are learning.

Can You Explain It?

Imagine a grown-up asks: "You have $8. Something costs $6. What happens if you buy it?"

You could say:

"I have enough money because I have $8 and it costs $6. If I spend $6, I will have $2 left."

If you can explain that, you understand the lesson.

The TaxFunders "Do I Have Enough Money?" Check

Before you buy something, remember:

LOOK.

What is the price?

COUNT.

How much money do I have?

CHECK.

Do I have enough money?

THINK.

What will I have left?

CHOOSE.

Do I want to use my money for this?

LOOK -> COUNT -> CHECK -> THINK -> CHOOSE

That is a money skill.

Money Starts Early

Buying something is not only about seeing something you want. It is also about understanding your money.

Before you buy, ask:

HOW MUCH MONEY DO I HAVE?

HOW MUCH DOES IT COST?

DO I HAVE ENOUGH MONEY TO BUY IT?

WHAT WILL I HAVE LEFT?

Then you can make your choice.

HAVING ENOUGH MONEY MEANS YOU CAN BUY IT. IT DOES NOT MEAN YOU HAVE TO.

CHECK THE PRICE. CHECK YOUR MONEY. THEN CHOOSE.

That is how smart money choices begin.

MONEY STARTS EARLY

Education First. Always.