Becoming Money $mart: A Simulation for Financial Decision Making, 1st Edition Page 74 (74 of 288)

74
Becoming Money $mart
Resolve to follow your budget.
Figure
3-3
Tips for Budgeting
●
Keep track of the amounts you spend each week.
●
Transfer that information to a budget each month.
●
Pay yourself first.
●
Be disciplined.
●
Stay organized.
●
Review the budget regularly.
●
Make changes when necessary.
1. Do a search for budgeting software on the
Internet. Try to fi nd fi ve different programs
and record them in the table that follows.
Name of Software Cost
1.
2.
3.
4.
5
2. If your teacher permits, download a free budgeting software program and
create your budget. Was the software easy to use?
Web
Connect
Budgeting Software

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74
Becoming Money $mart
Resolve to follow your budget.
Figure
3-3
Tips for Budgeting
●
Keep track of the amounts you spend each week.
●
Transfer that information to a budget each month.
●
Pay yourself first.
●
Be disciplined.
●
Stay organized.
●
Review the budget regularly.
●
Make changes when necessary.
1. Do a search for budgeting software on the
Internet. Try to fi nd fi ve different programs
and record them in the table that follows.
Name of Software Cost
1.
2.
3.
4.
5
2. If your teacher permits, download a free budgeting software program and
create your budget. Was the software easy to use?
Web
Connect
Budgeting Software

Help

Chapter 3
Budgeting: Keeping Track of Your Money
73
Budget for Carlos Acosta
Figure
3-2
Carlos Acosta
Budget
For the Month of June, 20--
Income
Pay from part-time job $268.42
Babysitting 25.00
Yard work for neighbors 50.00
Allowance 30.00
Gifts 25.00
Total Income $398.42
Expenses
Fixed Expenses
Savings 100.00
Bus fare to work 16.20
School lunches 55.00
Total Fixed Expenses 171.20
Variable Expenses
Miscellaneous 40.00
School fees 18.00
Entertainment 40.00
Clothing 50.00
Eating out with friends 45.00
Total Variable Expenses 193.00
Total Expenses 364.20
Discretionary Income $34.22
Check
Yo ur
Understanding
Why is it important to create a budget? How will a budget help you in creating
a fi nancial plan?

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Chapter 3
Budgeting: Keeping Track of Your Money
75
Dollars
and $ense
Budgeting
Budgeting is an important step
toward fi nancial planning. It will
guide your future spending and help
you be fi nancially responsible. By
learning how to create a budget now,
you will be able to make decisions
more wisely for saving and spending
money in the future.
Being organized is important when
creating your budget. If you do not keep
receipts and other records, it will be
diffi cult to be accurate when tracking
your spending. This means that when
you create your monthly budget, you
may omit expenses. In that case, your
budget would not be accurate.
There are many ways of keeping
track of your income and expenses.
Here are some things you can do each
day or week to prepare for your budget.
❑ Each time you spend money,
be sure to get a receipt. On the
receipt, write the item or service
you purchased. Put the receipt
in an envelope. At the end of the
day, record these receipts on your
daily spending chart.
❑ When you get your paychecks,
put all of your pay stubs in an
envelope. If your job is cutting
grass, you may be paid in cash. If
you receive cash, write how much
you receive, the date, and the job
on a piece of paper. Put this piece
of paper in your envelope.
❑ If you take money out of your
checking or savings account, put
the receipt in your envelope.
❑ If you cash your paycheck, divide
your money into envelopes for
fi xed and variable expenses. This
will help you avoid overspending
on things you do not really need.
❑ If you have access to a computer
at home, you may want to keep
track of this information on a
spreadsheet or program specifi cally
created for budgeting.

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