Knowing how your family spends money is key
to healthy financial management. Once you know where
the money is going, you can plan a budget that’s
right for you.
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Ask all adult family members
to use a notebook to record spending for an
entire month. |
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Keep a record of all spending
– be it cash, credit card or cheque –
so you can see where your money is going. |
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Create a category for
every type of spending in your family, from
major expenses such as housing to miscellaneous
day-to-day purchases such as allowance. Be sure
to include your savings as well as finance charges
on any outstanding credit or loans. |
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At the end of the month,
add up all expenses in each category to determine
your total expenses per month. |
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What you see at the end
of the month may be very revealing and surprising. |
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It’s a good idea
to refresh your spending diary each year, as
well as any time you have significant changes
in your circumstances, such a shift in income,
purchasing a new home or having a baby. |