- A budget is a plan for your expenses and income.
- Budgets can help you save towards a goal.
- Budgets help you understand and better control your finances.
- Allow for unexpected expenses.
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What is a budget?
A budget is a plan for your expenses and income.
Why are budgets important?
- A budget helps you to understand where your money goes, so you can take control of it.
- A budget can also help you to achieve your financial goals by being able to plan for them.
How do you create a budget?
- A budget is made up of things you need and want to spend money on (eg. food, school bus fares, school stationery, magazines, mobile phone calls or music downloads) and your income.
- The easiest way to create a budget is to write down in one column your total income or allowance for a set period of time such as a week. In another column write down your expenses such as mobile phone bill, etc. Add up the expenses and subtract them from the allowance. This leaves the amount you have left. If your total is a negative amount (in the red) it shows that you need to lower the amount you are spending each week, or somehow generate a greater allowance.
Tips on budgeting
- When developing goals for your money, start with small achievable ones.
- Allow for unexpected expenses in your budget.
- Keep some flexibility in your budget. If it's too tight it will be harder to stick to.
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Doing it by the book
As a parent it's only natural to want to help your child, but when it comes to homework and study, the completed work should be theirs.
Here are some important points to remember to ensure your child is following good practice for a lifetime of learning.