Record ALL Expenses – Financial Literacy Spending Series

One very important step toward financial literacy and success with your spending plan is to track all of your expenses. Being able to visualize your spending allows you to use this information to make future purchasing decisions.

Track all of your expenses for a full month, and make sure that everyone in the family participates in this process; it has to be accurate for it to work. This means that you even have to fess up to the $1.00 a day you use in the vending machine for your afternoon candy bar. Even cash transactions count! Once you have this all added up, you will know where you stand every month because you will have the accurate amount that you spend.

Once this is completed, you need to get the amount that you earn each month. Then you will look at these numbers and see where each of these expenses figure in. After doing this, you will be able to see areas where you can save, and where you can apply extra money, such as paying off debt or toward your savings accounts.

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