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Becoming Money $mart
Budgets
In Chapter 1, you learned some of the basics of fi nancial planning. The
next step you will take toward your fi nancial plan is to create a budget. What
is a budget? A budget is an estimate (usually by category) of expected income
and expenses for a given period of time. A budget may be prepared for a week,
a month, or a longer period, such as a year. A budget is a useful tool that can
help you keep track of your money and spend wisely.
In Chapter 1, you set short-term and long-term goals. These goals were based
fi rst on your values, then on your needs and wants. These goals will help you as
you create your budget. Go back to Chapter 1 and take a look at the goals you
set. Review these goals before you move forward with the next section. Make sure
these goals are appropriate for you so that you can use them to create your budget.
Being ResponsibleFinancially
Budgeting
A Checklist
Do you ever wonder where your money goes? Do you get to the end of the week and
fi nd that you no longer have any money to spend? It is important to keep track of
money you have and what you spend to be fi nancially responsible.
Yes No
_____ _____ 1. Did I spend my weekly budget on needs?
_____ _____ 2. Did I spend my weekly budget on wants?
_____ _____ 3. Did I have money left over this week to put in savings?
_____ _____ 4. Did I write down everything that I spent money on?
_____ _____ 5. Did I resist buying something that I really didn’t need?
_____ _____ 6. Did I run out of money this week?
_____ _____ 7. Did I have to borrow money to make it through the
week?
_____ _____ 8. Did I learn anything this week about my spending and
savings habits?
_____ _____ 9. Did I buy something this week that I regret?
______ ______ 10. Was there something I really wanted to buy this week
that I did not have enough money to buy?