How to make a Budget
by Hannah Gschwind

1. Make a list of everything you spend for a couple of weeks.

  • Groceries
  • Toiletries
  • Fast food

2. For the same time period, record everything you earn and its source.

  • I earn the money from my parents. I get $10 a week from doing chores everyday.

3. Now that you have recorded, analyze it.

  • I do not earn as much money as I spend, but I do spend money on things that I absolutely need with the exception of fast food. Although, you can not have a home cooked meal every day.

4. It is a good idea to have a little extra for hard times.

  • It is a good idea to have a little extra money for hard times because sometimes emergencies happen, and you will not always have enough money to pay for what happens. For example, you could get into a car accident and break your arm. You may not have enough money to pay for all of the medical bills, so you can take some out of your savings to help pay the payments.

5. Monitor your spending.

  • If you start monitoring your money early, it will become a habit because the habits you form while you're young will continue on as you get older. Therefore, if you are a smart spender and a big saver, you will continue to be one for the rest of your life, and it will pay off.

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