3. 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: ItemNeedWant 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 Add some of your own … 1. 2. 3. 4. 5.

4. Avoid Budget Killers Cutting back on small expenses can lead to large savings over time. Budget KillerCostSavings 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 … 1. 2. 3. 4. 5. 6. Discussion/Alternatives: