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Writer's pictureRishi Hariharan

Budgeting Basics: The 50/30/20 Rule

Updated: Oct 14

Presented to: Greene Middle Schoolers, Palo Alto.



What's up, it's Rishi. Today, I want to share a simple budgeting trick I taught at Dreamcatchers last week: the 50/30/20 rule.


Here's how it works:

  • 50% of your money goes to needs (like food and shelter)

  • 30% goes to wants (like movies or video games)

  • 20% goes to savings and paying off debt


    We did a fun exercise where each student got a pretend $100 allowance and had to budget it. Here's what one student, Maria, came up with:

  • Needs ($50): $30 for school lunch, $20 for bus fare

  • Wants ($30): $15 for movies, $15 for snacks

  • Savings ($20): All into her piggy bank for a new bike


The kids loved seeing how they could still have fun money while saving for bigger goals.


Want more budgeting hacks? Hit up fiscally-fit.org!


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