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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 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.
An expense is something that you spend money on. What expenses do you have in your life? What expenses do your parents have?
Now, use these worksheets to help you think about expenses and make your money pie!
