Share This Article
Make a Money Pie!
The key to financial well-being is to spend less than you earn. Sometimes that can be more difficult than it sounds, so you should always make a budget and stick to it!
A budget is a plan for using income productively. There are many things that you can use your money for, but for this exercise, we divide it into four different categories:
$ Saving: money for emergencies, such as medical bills or your car breaking down, and big ticket items such as college, a house, or new laptop.
$ Spending: money for wants, like clothes, music, and movies, and needs, like food and shelter.
$ Investing: money for investments, like stocks, businesses, or property, that gain in value over time so that you have more when you are older.
$ Sharing: money to help other people or the world in which you live, such as charities and other causes.
Learning how to create a budget and stick to it is a great way to develop good money habits.