Expenses: Where does your money go?

By Tracy Rabi

Expenses are the money you spend—on food, transport, airtime, or even the latest fashion trend. Whether big or small, every expense affects your budget. 

Think about your daily life. Maybe you get pocket money from your parents. Some of it goes to lunch, bus fare, or mobile data. If you don’t track your spending, you might run out before the week ends! 

Let’s use an example:

You get 5,000 shillings as pocket money. You spend 2,000 shillings on a comic book, 1,000 shillings on snacks, and 500 shillings on a new pencil.

Those are your expenses — the money you used to buy different things. After spending, you’ll have 1,500 shillings left.

Even families have expenses. They pay for food, rent, electricity, and school fees. Some expenses are necessary, like groceries, while others—like entertainment—are choices. 

Now, how can you practice managing your expenses so you don’t run out of money?

Make a list before you spend! Decide what you really need first (like school supplies) and then what you want (like candy).

Set a spending limit. For example, decide that you’ll only spend 2,000 shillings this week and save the rest.

Think before you buy. Ask yourself, "Do I really need this? Will I still want it tomorrow?"

Keep track. Write down every time you spend money in a notebook. You’ll be surprised how fast small expenses add up!

Smart spending is key. Plan your expenses, avoid impulse buying, and always save a little for emergencies. Understanding expenses helps you stay in control of your money, making life easier.

The better you manage your expenses now, the more awesome things you’ll be able to do later!