Money: The Basics

A budget helps you manage your money. Budgeting is about planning how much money you are going to earn, spend and save in a certain period of time. This can help make sure you have enough money for all your necessities and to meet the financial goals you set for yourself.

Before you start budgeting, you will need to know your expenses and current spending habits. The Government of Canada has an expense calculator to help you figure out how much you spend each month. It is based on your current expenses, but you can change it if you want to increase or decrease your currently monthly expenses. The Government of Canada also has a helpful budgeting tool. You can use it to set goals for how much you want to spend and save each month based on your income.

• Check over your budget every three months to see if it needs to be updated. You should also double check your budget when there are significant changes such as starting a new job, buying a home or moving in with a partner.
• Keep your receipts and bank statements to keep track of where you are spending your money.
• Make a budget that is realistic and balanced between set expenses, things you need, and things you want.
• Use budgeting apps and tools.