Create Good Spending Habits Although you may not realize it, the everyday choices you make now...
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Transcript of Create Good Spending Habits Although you may not realize it, the everyday choices you make now...
Create Good Spending Habits
Although you may not realize it, the everyday choices you make now regarding finances are shaping your money habits and management skills. Sometimes you will achieve success; other times you may falter. Understanding the impact of your choices will help you have more successful moments in the future.
Learn to Live on a Budget
A budget is a plan for managing your money; it helps you track the money you earn and how you spend it. One of the first steps to creating a budget is determining if you spend your money on things you want or things you need.
• A need is necessary for survival, such as food and shelter. • A want is something you could live without, like concert tickets.
Decide if the following items are wants or needs by placing an X in the appropriate column:
Item Need Want
Cell Phone
Clothes
Fast Food
Music Downloads
Unlimited Text Messages
Gasoline
Vending Machine Snacks
Movie Ticket
Pizza Delivery
Gourmet Coffee
Electricity
Air Conditioning
Indoor Heating
Bottled Water
Xbox
iPod
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Avoid Budget Killers
Cutting back on small expenses can lead to large savings over time.
Budget Killer Cost Savings in One Year
Bottled Water $1(daily) $365
Fast Food $5 (weekly) $260
Movie Ticket $7 (weekly) $364
Vending Machine Snacks $1 (daily) $365
Pizza Delivery $10 (weekly) $520
Video Game Purchase $50 (4x per year) $200
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Discussion/Alternatives: