Income vs expenses
Explore why income = money in (earnings, allowance, gifts).
In this lesson
Income vs expenses is part of What Is a Budget?. This preview shows how budgeting connects to everyday family decisions such as earning, saving, spending choices, goals, approvals, or parent-guided money conversations inside Progress Penguin.
Think about this money choice
Imagine this situation: Your income this week: allowance 3000 in local currency + chore earnings 800 in local currency. Your expenses: food 1200 in local currency, transport 600 in local currency, airtime 300 in local currency.
How it works
Income = money in (earnings, allowance, gifts). Expenses = money out (spending). The gap between them is your surplus — or deficit.
Try a real-life example
Real-life money moment: Monthly income: 12000 in local currency. Monthly expenses: 9500 in local currency. You want to save 20% of income.
Activity preview
Match the money ideas
Use what you learned to complete this short challenge.
Practice funding your spending account
Open Requests and make a deposit request so you can see how money gets added before spending. Parent approval can happen later.
Quiz preview
If income is 1000 in local currency and expenses are 1200 in local currency, you are:
Your income this week: allowance 3000 in local currency + chore earnings 800 in local currency. Your expenses: food 1200 in local currency, transport 600 in local currency, airtime 300 in local currency. What is your surplus?