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

Add some of your own …

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Discussion/Alternatives: