Money: The Basics

MONEY: THE BASICS

Money is something we all need and use every day. We use it to pay our bills and to buy clothes, food and all the other items we need in our lives. To get money you need a job or some other type of financial support. It is also a bit tricky to learn how to use banks, how to budget, how to file taxes and everything else related to money. If you are feeling overwhelmed by all this money stuff, that is completely normal and there is nothing to be ashamed of.

The good news is that there are many resources to help with money.

Why should I budget?

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.

How do I budget?

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.

Tips for budgeting:

• 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.