A budget is a plan for how you’ll spend your money. To create one, you divide your income (the money you get) into your expenses (the things you buy). Income Your income probably falls into one of these categories right now: You earn a regular allowance—A steady flow of money makes creating a budget easy.
Still stashing money under beds, in ceiling tiles, or under floorboards? You may even use a safe to protect your cash. Yes, these are fun, creative ways to secure money, but they aren't great for all your income. Instead, it’s time to take safe-guarding your money a little more seriously. Checking accounts—they’re serious—and safe. Balance
When you hear the word risk, you may think of things like rock climbing or riding roller coasters. But risk is a part of everyday life, too.Risk is the chance for harm or loss. Sometimes risk leads to positive consequences—like discovering you love rollercoasters or are really good at rock climbing. Other times, risk has negative
It’s easy to get caught up in the magic of holiday spending. But if you’re relying on credit to make holiday wishes a reality, the magic often falls flat when your bills come due. Take the time now to create a holiday budget and avoid a post-holiday spending hangover.Be RealisticThe best thing you can do to
If you're building an emergency fund, saving for a big purchase, or getting money together to invest, using an insured savings account can put you on the right road. Most banks and credit unions offer a variety of savings accounts. Some popular savings options beyond the basics include money market accounts, and certificates of deposit (CDs). Getting
The value you get from your job is more than just your paycheck. Yes, your salary matters. But to truly assess your total compensation, you also need to consider things like bonuses, commissions, benefits, and other forms of cash and non-cash compensation. Total Compensation Your total compensation is the value of your salary plus all the extra
When you earn income, you get to decide how you spend that money. What you spend money on won’t be the same as other people, because everyone has different spending habits. Learning when and what to spend money on is an important part of money management. Opportunity Cost Every purchase comes with a tradeoff. This
Money that grows without you having to do anything? Great for saving money, but can be dangerous when you’re borrowing. Isn’t it Interesting? Interest is money that's automatically added to a starting balance. It can be earned or owed. You can earn interest by keeping money in certain financial institution accounts, such as a savings account
Income and expenses are two of the most fundamental aspects of a budget. Income To have a budget, you need income. Income is any money that you receive. The most common type of income is earnings from a job, but other forms of income include interest (such as from a savings account) and investment earnings. Depending on
Attending college is an excellent opportunity that comes with a hefty price tag. Beyond tuition, students face costs like textbooks, housing, and daily essentials. Let’s go over some of the most common college costs so that you or your student can be prepared when the time comes.. Starting Out Heading to college brings a new
A certificate of deposit or share certificate can be a great way to earn a high interest rate, but both require patience.The BasicsCertificates of Deposit (CDs) and share certificates are ways to earn more interest than you usually would in exchange for leaving your money in a financial institution. When you open either, you choose a length of
Making and spending money is a critical part of financial responsibility. Managing your money requires figuring out how much money you have coming in, and how you spend that money going out. The money coming in is your income, and the money going out is your expenses. You can compare your income with your expenses and make
