Developing financial fitness takes planning, training and practice. Being able to responsibly manage your money helps to provide more security and stability in your life.
Respond to the following questions in your notebook:
- What would you do if you won a million dollars?
- The BEST thing I ever saved money for was …
- The WORST choice I ever made with my money was …
- For questions about money and finances, I would talk to ＿＿＿＿＿＿＿＿ because:
It’s important to make a plan for spending and saving; this plan is called a budget. A budget is nothing more than a plan to guide your spending. They are not necessarily rigid or all about scrimping. They simply help you understand where your money is going so you can meet your needs and fulfill your wants.
An important part of creating an accurate budget is tracking exactly how much money comes in and goes out each month, which is called a cash flow.
In your notebook, write down the last three purchases you made, as well as the most recent purchase that you made over $25. Reflect on these purchases. to get you started, here are some questions you can ask yourself:
- Was the purchase planned or spontaneous?
- Did you research the item before buying it?
- Were you influenced by advertisements or the people around you to purchase?
- How did you feel after you made the purchase?