Budgeting

=Budgeting= This lesson comes from TheMoneyInstructor.com Copyright 2008 Money Instructor

A budget is a money plan. It is like a blueprint of how much money you earn and how and where you spend it.
 * What is a budget? **

Whether you have a lot of money or just a little, a budget can help you in many ways:
 * Why should I budget? **
 * If you have a budget and stick to it, you will be less likely to blow your money during random daily spending.
 * A budget can help you reach a financial goal because it controls how much you spend and how much you save.
 * Budgets can help eliminate many money surprises because you’ve planned ahead and know what to expect each month.
 * Even though you’re young, you can start budgeting now to get yourself into the habit.
 * Budgets help you see exactly where your money goes.

When you are setting up a budget, you first need to decide if you’re going to use a weekly or monthly budget. If you get a weekly allowance, go for a weekly budget. Start with how much money you get each week. Figure in allowance and other jobs that you get paid for doing. Next, figure out what you //need //to pay for with this money. Do your parents expect you to pay for your school lunches out of this money? Do you need to buy school supplies or pay for the bus fare? List these expenses under "needs". Copyright 2008 Money Instructor
 * How do I budget? **

Finally, figure out what you //want // to spend your money on. Do you like to use money for an after school snack or do you like to collect something that your parents expect you to pay for yourself? Is there something larger that you’d like to save up for? List these expenses under "wants". Add up the totals and see if you have enough money each week to cover these expenses. If not, you’ll have to figure out where to cut expenses to get your spending equal to or less than your income.