- Size: 179 KB
- Pages: 7
- Language: English
- Quality: Very Good
- book by: YLAI state gov/Financial-Litaracy
- Available Formats: PDF, TXT or read online
Money Management Workbook information
This document is a workbook on money management that teaches budgeting skills. It explains that a budget tracks income and expenses to stay within spending limits and meet financial goals.
workbook instructs the reader to list their monthly income and expenses in categories like fixed costs, variable costs, and savings.
It then provides tips to adjust spending as needed, such as reducing discretionary costs, saving for emergencies, and using the 50/30/20 budgeting rule.
The reader is prompted to create their own budget using a template to analyze their personal finances.
Workbook Description
Page 1
At every stage of life, important financial decisions must be made, from how much to spend at the market to whether you should pursue advanced education, apply for a credit card or spend money on the latest mobile phone.
How well you navigate these decisions depends on your ability to manage your financial resources effectively.
With this workbook, you will learn more about budgeting, saving and goal setting to better manage your money today and for years to come.
Page 2
Money Management Workbook 2 Section One: Budgeting Basics To build your money management skills, start by creating a budget. A budget is a system used to monitor how much money you save and spend over a given period of time.
Budgets help you stay within your spending limits and accomplish your financial goals.
1. Create Your Budgeting Worksheet:
Every budget is unique, but it is helpful to use a budgeting template like the one included at the end of this section to keep track of how much money you are spending and saving.
You can create a similar worksheet in Microsoft Excel, Google Sheets or another online spreadsheet to track your income and monthly expenses.
There are also a variety of budgeting apps to simplify the process from your phone or desktop, such as Monefy, Mint, Whallet, Spendee or MoneyWise.
2. List Your Income and Expenses :
Start by calculating your monthly income. Income is money that an individual or business receives in exchange for providing labor, producing a good or service, or investing money. Individuals most often earn income through wages or salary.
Businesses earn income from selling goods or services above their cost of production. Whether your income is fluctuating, steady, or a combination of both, you should be able to calculate a monthly average based on your past earnings.
Next, add up your expenses over the past month. Expenses typically fall into one of two spending categories, which should be listed separately in your budget:• Fixed expenses: Bills that stay the same each month, such as housing costs.
• Variable or discretionary expenses: Bills such as utilities, groceries, clothing or entertainment that change from month to month.
3. Adjust Your Spending to Meet Your GoalsKeep in mind that there is no one-size-fits-all solution to budgeting. For instance, you might aim for a zero-dollar budget, in which you account for every single dollar of income and have no money left over at the end of the month.
Alternatively, you could apply the 50/20/30 rule and spend 50 percent of your income on essentials, 20 percent on priorities like debt and savings, and 30 percent on lifestyle expenses such as vacations and entertainment. Continue… (Read PDF)