Managing Your Money and Learning to
People with a small income may have trouble saving. If you are one of them, this booklet is for you.
“Why should I save if there are more days in a month than I have money to spend in each day?” The
answer to that question is simple: You need to save to stay out of debt and reach your financial goals.
People who have savings do not have to pay extra for the big items they buy. The extra is what you pay
in interest when you use credit. If you use credit, you may be adding more than 20 percent to your total
cost of buying an item. This means an item that costs 50 cents will cost 60 cents when bought on credit.
z People who save do not run out of money in an emergency.
z People who save can help their children go to college.
z People who save have a nestegg for their retirement. The nestegg allows them to live better
than they would if the only money they had were from social security.
“Well,” you now say, “I agree these are good reasons for saving, but how do I begin?”
Follow the 3 steps shown in this booklet.
Step 1. Figure out where you stand now
Where does your money come from? Where does your money go?
To find these answers, fill in this chart.
Where your money comes from:
Total Monthly Income
Where your money goes:
Housing and Utilities
Education and Recreation
Gifts and Donations
Others and Emergencies
Total Monthly Expenses
If you came out with extra money, good for you!
You will want to put it someplace safe for your future needs.
We will explore that in a few pages.
If the money ran out or if there were no regular savings, there is work to be done. To save you WILL
have to spend less. Here are 12 ideas for spending less. You may already do some of these things, but
there may be a few new ideas you can try.
z When you go to the store, ask yourself these questions: