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Spending money is as easy as knowing 1, 2, and 3. However, it’s not as easy to bounce back from debt when you’ve spent TOO much money. Each month we focus on one financial topic that will increase the knowledge of finance for customers. The October Concept of the Month is all about a spending plan. A spending plan ensures that you spend your money on necessities but still have money to spend on other fun things. Use these steps below to guide you as you spend your money wisely and effectively.
Must have money for:
It’s important to know the difference between necessities and wants. It’s important to also be able to prioritize and make sure that you fight the urge to buy things that are “wants” when you haven’t fulfilled paying for “needs”. This worksheet gives a step-by-step process that ensures an effective plan to determine what’s a need – and what’s a want.
Wish I could have:
“Wish I could have” are wants but aren’t necessarily needed. Wants can range from video games to clothes to shoes and other similar items. However, it’s important to understand that when wants are prioritized before needs, you potentially end up with something that you wanted instead of something that you actually need. This worksheet asks you to brainstorm specific examples as to what should be considered a want, and what should be considered a need.
If you have any questions or concerns please contact us or swing by Young Americans Bank. If you have any comments on how we can improve our spending plan, they’ll be greatly appreciated to improve the sufficiency of the information provided by Young Americans. Leave your comments below!