Financial Literacy Sample

Give Every Dollar a Purpose · 11

Step 2: Create Categories

Organize your expenses into categories such as housing (if applicable), transportation, food, and entertainment. You can be as detailed as you need to be to help you keep track of expenses, but try not to be so detailed that sorting your expenses becomes overwhelming.

As you organize your expenses, you also want to make sure you distinguish between needs and wants. Needs are basic things you must have to survive (such as food, clothing, and •Š‡Ž–‡”Ȍǡ ”‡•‘—” ‡• ›‘— ƒ› ‡‡† –‘ †‘ ›‘—” Œ‘„ ȋ•— Š ƒ• ”‡Ž‹ƒ„Ž‡ transportation), and resources that build and protect what you have so you can meet future needs (such as emergency savings and insurance). Wants are upgrades or other things that would „‡ ‹ ‡ –‘ Šƒ˜‡ „—– –Šƒ– ƒ”‡ǯ– ‡••‡–‹ƒŽ ‘” †‘ǯ– Ƥ– ‹–‘ ‘‡ ‘ˆ –Š‡ three categories of needs. This distinction helps you prioritize ›‘—” •’‡†‹‰Ǣ ›‘— Šƒ˜‡ –‘ ‘˜‡” ›‘—” ‡‡†• Ƥ”•–Ǥ SAMPLE