The problem of budgeting the funds of pupil organizations is being given increasing attention by school administrators, activity sponsors, and pupil leaders. In these times, when there is much discussion about balancing budgets, the school fails to perform an obligation if it does not utilize its resources for giving pupils actual practice in conducting the finances of their organizations according to good business procedure. Considerable attention and some experimentation have been given to the method of allocating funds in one city school system recently studied by the writer. Some of the practices may offer suggestions to other schools struggling with the same problem. Since the administrative organization in this system was not unlike that of many other city systems, only a brief outline need be given here. The superintendent of schools delegated to an assistant superintendent the responsibility for the supervision of pupil activities and to the treasurer of the board of education the responsibility for the accurate accounting of all money received and paid out by the school. Each school treasurer, a civil-service clerk giving full time to the work in the high school, was directly responsible to the principal of the school. Authorization from the superintendent's office for all collections, disbursement of funds only by checks signed by the treasurer and the principal, a monthly report of all financial transactions, a semester report, and a yearly audit of books by the treasurer of the board of education were features of this system which provided for an accurate accounting of funds. General policies were formulated by the superintendent's office, but considerable freedom was given each school in applying these policies to its own situation. In each of the seven high schools included in this study, a student council headed by the president of the general pupils' organization worked under the guidance of the principal or other faculty members