Chapter 3 Budgeting: Using Your Money Wisely 57 Copyright Goodheart-Willcox Co., Inc. May not be reproduced or posted to a publicly accessible website. Internet Research Money Management Software 1. Using the Internet, search for money management software. Find five different programs. Record the name and the cost of each one in the table that follows. Name of Software Cost 2. If your teacher permits, download free money-management software and create a budget. How could you use this software to help with your own budgeting? _____________________________________________________________________________________________________ _____________________________________________________________________________________________________ Dollars and Sense Budgeting Budgeting is an important part of financial planning. It will guide your future spending and help you become financially responsible. By learning how to create a budget now, you will be able to make better decisions 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 difficult to track your spending accurately. This might cause you to omit expenses when you create your monthly budget. In that case, your budget would not be accurate. There are many ways of keeping track of income and expenses. Things you can do each day or week to prepare for your budget include the following. • 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 your pay stubs in an envelope. If you receive cash, write how much you receive, the date, and the reason 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 fixed and variable expenses. This will help 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 use money-management software.