Budgeting 101

Examining your relationship with money and creating a budget process that works for you.

What is a Budget?

• Money Plan / Spending Plan
• An outline for income and expenses that balances to a net $0
  • Considers time frame, goals, and/or patterns
  • Contains flexibility
  • Used for planning and capturing trends, history, and data
  • Assigns income to categories, including savings
• Reflects priorities within current financial situation

How Do I Budget?

• Gather All Accounts
• Determine All Income Sources
  • 2 Sources: Recurring and One-Time.
  • Use normal month to establish baseline, use conservative estimates
  • Base budget only on normal and recurring income
  • Plan for the unexpected
• Determine All Expenses

Why Should I Budget?

• Financial wellness is part of the act of holistic well-being
• Avoidance and/or lack of awareness of finances is cited as a “major life stressor”
• Self awareness sets you up for success and financial safety
• Income versus spending management
• Develop an understanding of your relationship to money

Now What?

• Does Income – Expense = $0?
• Does income support your spending?
• Does your spending exceed your income?
• What are your options?

This guide was put together by the Financial Aid Office as apart of the Adulting 101 Series.

Schedule to Meet with Financial Aid