Exploring Financial Literacy 56 Copyright Goodheart-Willcox Co., Inc. May not be reproduced or posted to a publicly accessible website. A budget is a working document that needs to be reviewed often. You will need to update your budget when your income or expenses change. The advice in Figure 3-3 can help you follow your budget. Check Your Understanding Why is it important to create a budget? How will a budget help you in creating a financial plan? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ Give It a Go Give It a Go Creating a Budget 1. Use your information for estimated income and expenses to create a budget for one month. Use spreadsheet software or write the information on paper if you do not have access to a computer. Refer to Figure 3-2 as an example for the column headings, labels, and types of information to enter. 2. Save the budget file as directed by your teacher. Use a unique name for your file. For example, if your name is Mason Parker, save the file as MParkerNovBudget. Each month, you will be able to update the budget amounts as needed. Goodheart-Willcox Publisher Figure 3 -3 Budgeting will help you have some control over your finances. Why do you think some people have a hard time following a budget? Advice for Budgeting • Keep track of the amounts spent 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.