The art of budgeting! And why you need to know it...

A huge step towards independence is learning the art of budgeting! Money is great to have, but if left unsupervised, it has a habit of disappearing.   Which if all you need to do is make sure you have enough money for snacks, it is not such a big deal.  However, once you are independent, you will have all your normal bills to pay and food to buy, and without a doubt, some unexpected bills that need to be paid. Learning to manage your money and budget is an essential life skill, and it is one we can help you master!

There are a variety of different apps that can help you, but it can also be done with pen and paper.

The first things you need to start budgeting are:

1. Make a list of  much money you have coming in every month and the dates you receive them
   • Including wages, pocket money, benefits or grants.  
   • Now add them all up
2. Make a list of all the expenses you have and the dates each month they have to be paid.
   •  Mobile contracts, travel, food. Or if you are preparing to live independently, rent, electricity, gas, insurance etc. 
   • Add them all up.

The art of budgeting is to make sure you have more coming in (income) than you do going out (outgoings), and also, if you receive income at different times in the month, you need to make sure you have enough money in your bank account to cover everything when the bills need to be paid.  We will build upon this knowledge with you during our independent life skills project. 

Nerdwallet has recently issued a new blog listing the best budgeting apps for 2022 - So if you would like to go the digital route, take a look here

There are also a range of fantastic resources regarding budgeting here:

HSBC - Financial Education for Young Adults

Young Adults and Money Management 

Managing my money for young adults