You need to buy a jacket, but you also want to buy a new phone. How do you choose? 

To make good decisions about how to spend your money, start by setting your money goals and work toward achieving them with a plan in mind. A personal budget is a plan that helps you put the money you’ve earned toward savings, expenses (lunch, bus or entertainment money) or paying off debt (money you may have borrowed). 

When you’re creating a budget, it is important to understand the difference between something you need to have and something you want to have.

Remember to take care of your needs first, so you can think about saving for what you want. A budget can not only help you consider your immediate needs and wants, but prepare you to achieve your long-term financial goals. You may have some short-term goals that you can achieve in a matter of weeks, or long-term goals that will take years to attain.

Start creating a budget by setting goals for how you would like to spend and save your money over a specific time period. 

Be sure to consider everything you may want or need to purchase and separate those into categories.A ride on the bus would go under transportation, and a slice of pizza would fall under food.

 Complete the budget below by filling out how much money you would like to spend in different categories each month. The goal of a budget is to have money left over for saving, so you should start by thinking about how much you earn.

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