FINANCIAL LITERACY LEARNING CENTER

PERSONAL MONEY MANAGEMENT

SPENDING AND BUDGETING

BUDGETS HELP US KEEP TRACK OF OUR CASH FLOW TO AVOID OVERSPENDING


BUDGET BREAKDOWN

Budgets are prepared by tracking your daily spending and determining your income and expenses. Components of a budget include income (employment, allowances, etc.) and expenses (bills, food, transportation, etc.), which determine your overall cash flow, or movement of cash in and cash out. Expenses can be fixed (stay the same) or flexible (change from month to month).

Budget Breakdown Worksheet

WAYS TO SPEND LESS AND REDUCE YOUR SPENDING

If your expenses exceed your income, there are some simple tips you can follow to reduce your spending. Avoid impulse buying and use a list when you shop. Determine your needs versus your wants—buy only what you need, not because it’s on sale. Always pay your bills on time to avoid late fees. Carry only small amounts of cash on you and try not to use your credit card; if you must, control your use. Lastly, always keep your goals in mind.