The document provides steps and guidelines for creating an effective personal budget: 1. List your income and track expenses for at least a month to understand spending habits. Record income sources and pay close attention to expenses. 2. Set short, medium, and long term savings goals based on needs, wants, and income. Reevaluate spending to fulfill goals and adjust the budget as finances change. 3. Develop a savings plan by starting an emergency fund for unexpected expenses. Save regularly by "paying yourself first" and allocating a percentage of income to goals. Employed individuals should aim to save 10-15% of net income.

1. Finances
Financial Literacy

2. Budgeting
Budgeting Steps:
1. List Income: This first step is to calculate a net income. This measures up against the amount spent on expenses and other
discretionary spending. Getting your income and expenses down in writing helps you manage your money and track your spending behavior so
you can fulfill your goals. Your net income should be easy to record, including only the regular source (and sources) of income you expect to
receive over time. Listing your expenses and spending will require closer attention due to the impact of a mistake. Like many people, you may
not know exactly how you spend all your money outside of covering obvious monthly payments for housing, an automobile, regular monthly bills,
et cetera. This is why you should initially track your monthly spending - including purchases of little things such as coffee, sweets, books, and
other confectionaries - when you first prepare a personal budget. You should track your spending for at least a month as you are on the go
every day at home, at work, and at fun time.
2. Set Saving Goals: The next step is to formulate short, medium, and long term goals based on needs or wants. Be realistic in
your monthly budget about what you want, need, and can achieve based on real income. Short-term goals might include saving up for an
expensive date or for a new TV. Medium-term goals might include saving up for a car or a down payment on a house. Long-term goals might
include saving up for a child’s post-secondary education, or for retirement. Once you have set your goals, you can figure out how to achieve
them in the frame of your income and expenses. You may need to reevaluate some of your spending choices, clear more debt, or even
introduce lifestyle changes that lead to the happy fulfillment of the goals you have outlined. Always be prepared to alter a budget to your current
financial status at the slightest increase or decrease.
3. Develop a Savings Plan: Every personal budget should include a plan for savings. As a matter of fact, the mere act of
creating a monthly budget often opens up opportunities for increased savings, since personal spending ends up being better understood and
much more managed. For those who are short on savings, the first budget priority should be to start an emergency fund to cover three to six
months’ worth of expenses. In the event of unforeseen circumstances, such as a job loss, the emergency fund provides reasonable breathing
space for weathering the unwelcome storms before finding new employment. As part of the budgeting process, you should also plan to save for
all the welcome things in life. This means “paying yourself first” by establishing a program for regular savings with funds solely devoted to
meeting your financial and life goals. Each time you receive your pay cheque, take a percentage of it and put that money in your savings
account. Your bank can help you by setting up an automatic withdrawal to take money out of one account and put it into another account every
time you get paid. There are general rules for determining how much money you should devote to savings. If employed, try to save from 10 to
15 percent of net income. If unemployed, try to save two to three percent of net income.

3. Transitioning from Secondary
School
My mother plans on moving down south once I graduate. I hope to go
with her and live with her until I am able to find a good job and purchase
a home. A few careers I may chase are: {Insert Career Cruising
Assignment}

4. Credit and Debt
Credit is the practice of a party giving another party resources when the
second party doesn’t repay the first straight away. Credit can be used to
exchange goods, services, and money with relative ease, as long as the
debt is paid. Debt is the sum that is owed back to the lender of
resources.

5. Requirements for Reporting
Personal Income