Each week, we are sharing a financial wellness tip to help you make the connection between financial management decisions, your overall wellness, and student success. Money touches every aspect of our lives, and a lack of financial literacy can cause unnecessary stress and negatively impact one’s mental and physical health.
The Importance of Budgeting
A budget
is a spending plan based on your income and expenses. Basically, it's an estimate of how much money you’ll make and spend over a certain period of time.
Budgeting isn’t about depriving yourself - it’s about taking control of your money. That includes money for fun stuff, too! Budgeting encourages you to live within your means and put your money to work in the best way possible.
Think of a budget as a steppingstone to your financial goals. Tracking your income and expenses paints a clear picture of how much you have to save or spend. Once you identify patterns, you can see where to make adjustments. A good budget has you earmark money for an emergency fund
and savings goals like a vacation, new car, paying off student loans, or proactively thinking about your future financial goals. Mapping out expenses in advance reduces the risk of overspending and can help you pay off debt you may already have. Budgeting isn’t a cure-all, but it can help you manage financial decisions and prepare for challenges.
Be sure to follow the Financial Literacy team on Facebook,
Twitter,
or Instagram for more financial tips throughout the semester!
