Managing my money for young adults
Managing my money for young adults

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Managing my money for young adults

9 Building your first budget

It’s time to start building your budget. Before you do so watch this short video which sets out the simple steps involved.

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NARRATOR
Let's look at how a basic budget can be compiled and managed.
[MUSIC PLAYING]
Have a look at the example first, to see what's involved. And then, have a go at building your own budget using the principles set out.
Monthly income, this could include an allowance from your parents or guardians. Income from work after any deductions like tax. Other income, for example, birthday gifts. And also, any other items such as trade-in payment on a phone.
What about monthly spending? Well, this could include the cost of your phone, including any insurance on it. Spending on clothing and footwear. Travel and other transport costs. Socialising, presents, holidays. It can certainly also include a payment into your savings account, putting money aside for the future.
Now, have a go yourself. There may be other items of income and expenditure that you need to add to reflect your own circumstances.
Make sure you then total up your monthly income and monthly spending, and determine the difference between the two. If you have excess spending, you may be living beyond your means. But if your income exceeds spending, then that's good news because you've got surplus income leftover at the end of the month.
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Activity 6  Your first budget grid

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