A Telescope Budget at Northstar School

Priya's Telescope Goal

Priya is in the astronomy group at Northstar School. She wants to buy a beginner telescope that costs $180. To plan carefully, she records the money she earns each month from four jobs. The graph shows her usual monthly income. She tutors younger students for $30, walks neighbors' dogs for $20, helps return books in the school library for $40, and sells handmade star cards for $10.

Priya writes a monthly budget before she spends her money. Her usual income is $100. She plans $35 for needs, such as bus fare and school lunch. She sets aside $25 for wants, such as a movie or a snack with friends. She puts $30 into a telescope fund and gives $10 to a local food pantry. These amounts use all of her usual income.

Priya could save $30 each month and reach $180 in six months. She also asks whether borrowing would help her get the telescope sooner. Her aunt offers to lend her $60. They agree that Priya will pay 5% interest one time when she returns the loan. Interest is extra money a borrower pays for using someone else's money, and 5% means 5 extra dollars for every 100 dollars borrowed. Priya writes the interest and the repayment amount in her plan instead of treating the loan as free money.

Before choosing, Priya checks her income, keeps enough money for needs, and considers what she would give up. A loan could help her buy the telescope sooner, but the amount she returns would be greater than the amount she receives. Saving would take longer, but it would not create a loan payment. Priya decides to compare both choices with her budget.