Important things to know about Creating a Budget

Apr 5, 2023Financial Literacy

One of the most fundamental parts of taking control of your finances is to create a budget.  There are many benefits to having a budget because knowing where your money is going can give you a sense of empowerment and help you achieve larger financial goals, like saving for a car or home.  

Using the free *Native American Financial Services Association (NAFSA) Financial Literacy Program, you can explore online playlists with many modules that relate to overall financial competency, whether this is understanding credit cards or preventing overdraft fees, our curated playlists will provide you with important information.

Creating a Budget:

The first step in creating a budget is identifying and distinguishing between your wants and needs.  One easy way to do this is make a list of your monthly expenses, things like:  rent or your mortgage, groceries, utilities, as well as your entertainment/going out costs.  Distinguishing between your needs and wants will help you live within your means.

The Creating a Budget module, located in the Building Financial Capability also comes with a handy budget calculator that allows you to assess your weekly spending by looking at things like a cup of coffee, fast food, gas/ride shares, ATM fees, etc.  Using this calculator is especially helpful in getting you to think about some of the smaller expenses that may be adding up.  

It is helpful to set aside time to do your budget as it can be a tedious process, and being thorough and listing all your expenses will help you create the most realistic budget.  Once you’ve created your budget, it’s key to do regular check-ins with your spending and expenses.  Ultimately, a budget can be a great tool in setting long term financial goals, and help you take tangible steps towards those goals.

The NAFSA Financial Literacy Program provides a variety of modules and tools with easy-to-understand information to help people better comprehend their finances and make more informed decisions.

Explore the program today:

*The NAFSA Financial Literacy Program content contained on the NAFSA web page(s) referenced above, and on any subsequent pages created by our service providers/partners, provides general consumer information. It is not legal advice or regulatory guidance. There may be other resources that also serve your needs and you are always encouraged to, and should, consult with your own professional advisors prior to making any financial decisions.

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