Do you know how to budget?
August092023
In collaboration with Les as de l'info
At the store, have you ever had to choose between 2 different games? Or 2 different books? Have you ever had to resist the temptation to buy something because you wanted to save up for something you wanted more? The answer is probably!
You already know that having money to spend usually means making choices and thinking about what we want to buy.
How do you make a budget?
Making a budget helps you plan your expenses and avoid surprises.
It's basically a tool that lets you see how much money you have now, how much you expect to have later and what you're going to spend.
To make one, you'll need to know:
- How much money you already have in your account or your piggy bank
- How much money you expect to get in the future (your allowance, money you earn for chores and gifts)
- How much you want to spend
- How much money you want to save up
Here's an example: This month, let's say you want to go to the beach, and that means you'll have to spend a bit of money. But you also want to buy a couple of books for yourself, and a gift for grandma, too. And after all that, you still want to have $90 in your account for your savings. How do you know if you'll have enough money for everything? You can make a budget for next month, that's how!
Once you have all this info written down, you can see how much money you'll have left over after your expenses. Here's how:
You'll have $115 left over at the end of the month. That's $25 more than your goal!
When making your budget, ask yourself:
- Did you include taxes in the prices?
- Did you include all of your expenses?
- Do you get tempted to make purchases you didn't plan for?
- Do you have enough money after your purchases to buy what you want next month?
- Do you want to save your money for a future goal?
A budget will also help you know how much you still have to save up. As for what you want to start saving up for, it's up to you.
You can also test your knowledge with this game!