UCB 101: Learning to Budget!
I’m sure at this point you are looking for ways to teach and to keep your kids active all day! One way to keep the kids busy is to start teaching them about money and how to budget! Sitting down and balancing a checkbook is a thing of the past and it seems budgeting is too. Budgeting is a value and skill that shouldn’t be taken lightly. Teaching your kids how to budget will also allow you to sit down and take a look at your budget and allow you to update your spending and saving habits.
The basics of budgeting are much easier on paper then actually in practice. Hopefully with these tips you can teach your kids a life skill and help get you on a new financial track.
Step 1: Establish the WHY?
Why are you trying to establish a budget? What is the purpose of the budget? Is it to save up for a major purchase, like a home, car or college? Maybe you want to create a financial security blanket? Establishing the why will make creating a plan easier.
Step 2: Track your habits
Using the UCB app, follow your purchases. What are you spending your money on? Where are you overspending? Establish your needs and wants, and that will lead to where you can make cuts in your spending habits.
Step 3: Add up your income/subtract your expenses
After tracking your expenses for a month, figure out what is needed and what is expendable. Monthly expenses like rent/mortgage, electricity, cell phone, groceries are all needs. Determine what can you can eliminate by determining what you don’t need.
Step 4: Put Pen to paper
Once you know where your expenses are and how much your income is each month its time to determine what your spending/saving rules will be. Be sure to give yourself a little wiggle room each month in case of unexpected expenses.
Step 5: Review your budget
Once you establish your budget, don’t forget to review! After a few weeks, go back and check to make sure you are following the rules you set! Don’t forget to change your budget if your income increases or decreases or if you start paying off bills and do not have those expenses anymore.
Step 6: Breath Easy
Give it time! It is going to be hard at first but after a few weeks of discipline you should be closer to your financial goals! Keep at it, and don’t forget to set small goals as a way to reward yourself as you try to attain your main goal!
Setting a monthly budget shouldn’t seem like a chore! If you are having a hard time establishing a budget, let us help! With our myMoney tools you can set a limit on everything from going out to groceries! All in the name of saving money!