Spend some. Save some.

Figuring out how to spend your money in a smart way

can be challenging.
You can begin by creating two lists. One list which we’ll call
NEEDS—are those things that you simply can’t do without.
The second list—let’s call it WANTS— are things you would
want to have but aren’t absolutely necessary.

What you need: What you want:

1. __shelter
_______________________________________ 1. __shoes
_______________________________________
food
2. _________________________________________ 2. __gift
_______________________________________

3. __clothes
_______________________________________ 3. __tv
_______________________________________

4. __water
_______________________________________ 4. __clothes
_______________________________________

5. __health
_______________________________________ 5. __phone
_______________________________________

Use the Gotta Have It Gauge below to really think about what it should already be something you have listed on your needs
you need and what you want. Now make a combined list of and wants list. Otherwise, you have just spent money on
those needs and wants and then prioritize the entire list. What something that was not as important.
are the top 3? Any surprises? Each time you make a purchase

Run each item on your

Wish List through this gauge.
My Spending Wish List
in order
Gotta Have It
Gauge
My Spending Wish List bicycle
1. Do I need this? roll skates
ipad 2. If not, do I really want it?
Will I still want it tomorrow? headset
bicycle 3. Is this something I must buy monopoly
now or can I take some time
roll skates to think about it? iPad
headset 4. A
 m I sure that it will get used
or worn frequently?
monopoly 5. If I buy it now, will I have
enough money left over to buy
the other things I’ll need soon? Rewrite your Wish List in order
of the most to least wanted.
Set Goals for your Money SMART goals are:
Setting goals for your money helps you remember what’s Specific: Goals are focused, not general.
important to you when the temptation to spend taps you
on the shoulder.
Measurable: Goals define exactly what you need to
accomplish. Your destination should be crystal clear.
A short-term goal is for something you need or want soon.
A long-term goal is for something you want or need in a few
Achievable: To check if your goal is achievable, ask,
“Do I feel I can accomplish this?” Keep your personal
years. Put your goals in writing and make them visible so you
cirumstances in mind. Saving $100 may be achievable
can see them every day as a reminder.
for you, while saving $25 or $50 might be achievable for
Whether your goals are short or long-term, be sure to make someone else.
them “SMART.”
Results-based: Goals should be focused on getting to a
specific destination—an endpoint.
Timed: Goals should have deadlines—clear dates when
you’ll be able to say, “I did it!” These deadlines give you
something to aim for and look forward to.

Not-So-SMART
vs. SMART Goals
Not-So-SMART Goals
Not-so-Specific goal
My Short-Term Goal: My long-Term Goal: Have fun.
My short term goal is to
Not-so-Measureable goal
Save some money.

Not-so-Achievable goal
Adopt all puppies who
do not have a home.

Not-so-Results-based goal
Get more money.

Not-so-T imed goal

Buy a bike.

SMART Goals
Specific goal
Go out for pizza with my
friends next Saturday.

Measureable goal
Save $25 by the end
of May for summer camp.

Achievable goal
Share my time and talent
as a volunteer aide at an
animal shelter this summer.

Results-based goal
Earn $15 babysitting by
the end of the month.

Timed goal
Buy a bike by April 15.
Budget your Money Use the Money Diary worksheet below to keep track of the
money you spend and the money you receive this week. You
may be surprised at how much money you spend and what
You may not know it, but you already know how to budget. you spend your money on. Now look at your income. Think
The skills you need to budget your money are the same ones about where you get money. Is it an allowance? Or, do you
you use to budget your time. receive money for special holidays? Or, do you have a job
where you earn some money? Now that you see what you
spend in a week, does your income cover that spending? If
not, it’s time to rethink your spending.

My Money Diary for the week of _____/______/______

INCOME – MONEY THAT CAME IN

Allowance $
Job $

Budgeting your money is a lot like budgeting your time. If Gifts $

you know how much money you have and you work out how Other: (specify) $
you’ll spend (and save) it, you’ve got the basics of a budget. It’s
not that complicated. But making a budget does take some Other: (specify) $
thought. And once you have a budget worked out, the trick is Other: (specify) $
to stick with it.
TOTAL INCOME $
You’ll be surprised how much a budget can help you get con-
trol of your money. When you have a handle on your money,
you’re much more likely to be able to do the things you want,
and not have to worry where you’ll get the cash.
EXPENSES – MONEY THAT WENT OUT
Money for SAVE $
THE INS AND OUTS OF A BUDGET
Money for DONATE $
To work out a budget, you really need to know two things:
Money for INVEST $

How much money you have Gifts $

coming in. That’s your INCOME.
School lunch $
School supplies $
Computer, cell phone, texting expenses $
Clothes $
Shoes $
Shampoo and Conditioner $
Make-Up $
Eating out (pizza, fast food, restaurants) $

Sports equipment/uniforms $

Books and magazines $

CDs $
Movie tickets $
Other: (specify) $
How much money you have going
Other: (specify) $
out. Those are your EXPENSES.
TOTAL EXPENSES $
Check Your Balance
How to write a check–As you can see from this
What is a Checking Account? example, it’s pretty easy to write a check:

You open a checking account with a bank or credit The name of who Month, day and year Write out the
you’re paying you are writing the check amount in numbers
union by depositing money into the account. You can
then withdraw money, write checks, use a debit card, or
have money drawn directly from your account to make
purchases or to pay monthly expenses such as rent,
utilities like electricity, or loan repayments. You just have
to be sure you have available funds, or enough money
in your account, to cover what you spend.

A real plus of having your money in a checking account

is that it is insured by the Federal Deposit Insurance
Corporation (FDIC). That means that it is safe, even if
something happens to the bank where you have your Write out the Sign your
account. Even better, some checking accounts pay amount in words name here

interest on your balance. And most banks offer special

accounts with lower costs for students. Bouncing sounds like fun,
Since banks charge fees for checking accounts, look for
but not when it comes to checks
one that charges the lowest amount for the services you Have you ever heard somebody say they
want. So ask about their fees for: “bounced” a check? It means they wrote
a check for an amount greater than the
• The number of checks you plan to write each month amount of money they had in their checking
• Account balances that fall below a required minimum account. The bank bounces it back to the
store, and both the bank and the store usually
• Using an ATM
charge a huge “returned check fee.” It can cost
• Paying your bills online you $60 or more in fines to bounce a $5 check!

Picking the right checking account is another way to The best way to avoid bouncing a check is to keep a good
make the most of your money. record of the checks you’ve written (and don’t forget the ATM
withdrawals and debit card purchases!) Record every check in
the check register at the end of your checkbook.

Take the
Checking
NUMBER OR
CODE DATE TRANSACTION DESCRIPTION PAYMENT
AMOUNT ✓ FEE DEPOSIT
AMOUNT
$ $650.00
5/5 Debit card for pizza 8.63
$ $

Challenge! A.
101 5/8 Check for books 150 B.
In this exercise, you will add
the deposits to the checking
5/10 Gift from Uncle Buck 250 C.
account, and subtract the
amount of those things that
102 5/11 Check for MP3 player 99 D.
were bought with a check
or debit card to keep your
balance up to date.
103 5/15 Check for ice cream cake 17 E.
The amount will equal your
final balance.
5/20 Debit card for 3 music CD’s 54.54 F.

$650.00 A. B. C. D. E. YOUR FINAL

BALANCE:
- 8.63 - 150.00 + 250.00 - 99.00 - 17.00 - 54.54
A. B. C. D. E. F.
Choose the Right Way to Pay

You have several ways you can pay for purchases in stores When you buy something, you have to
and online. Should you use your credit card, your debit card decide how you’re going to pay for it.
or cash? Read the questions below then type an “X” for the
correct answer. Check the answer key below to see how For small things, like a snack, you’ll probably pay cash. But
for more expensive purchases or for when you don’t have
you did.
money with you, a debit or credit card can be handy. There
1. Y
 ou see the needle on your gas gauge approaching “empty”. are also ways to pay that can save you money and even
You stop and get gas. What is the best way to pay? earn you rewards.
Credit Debit Cash Each type of payment has certain advantages, but also
certain risks or sometimes added costs. Being smart about
2. Y
 ou are on your way to school and stop at the local donut
how to pay is another way to use your money wisely.
shop to get a cup of coffee, and well, yes, a donut.
Credit Debit Cash
3. Y
 ou are online at your favorite store and want to buy a pair
of boots before the snow starts to fall to keep your feet dry
and warm.
Credit Debit Cash
4. Y
 ou go to get your haircut before graduation. The cut is
great and you want to leave a nice tip. What is the best way
to pay (for the tip).
Credit Debit Cash
5. Y
 ou are at the checkout and the clerk offers you a discount
on today’s purchase if you open a store credit card and put
the purchase on the store credit card.
Credit Debit Cash
6. Y
 ou are struggling to pay your bills on time. Your telephone
bill and your car insurance bill need to be paid this week.
Credit Debit Cash

6) Debit. If your credit is bad because you have not paid bills on time, for now, use debit to pay those bills. Begin to use credit sparingly to rebuild your credit.
regular credit card which will likely have a lower rate of interest. Store credits cards often charge higher interest rates on balances so it is much more expensive to use a store credit card.
If you are going to pay your credit card in full when due, then consider taking advantage of the discount offered. If you are not going to pay your credit card in full when due, then use your
See answer to question #2. Some merchants pass along the interchange fees to employees which reduces that nice tip you wanted to give them for great service. 5) You have two options:
dispute the charge, you can avoid the loss. Debit cards have protection as well, but it can take a couple of weeks to get your money back and that could lead to overdrafts and fees. 4) Cash.
be as high as 3%, reducing the amount of the profit the store could earn on your purchase. 3) Credit. Credit card issuers watch for fraudulent charges. If your card is used by a thief, and you
on your debit card, this could overdraw your account and cause an overdraft fee. 2) Cash. Your local store pays the bank a fee to allow them to accept credit cards. Sometimes that fee can
Answer Key: 1) Cash or Debit. Gas stations can put a freeze on part of your available funds to be sure you will have enough to pay them for the gas. If you are spending close to your limit
Protect Your Identity
Identity thieves are very clever and have many ways to get your
If someone steals your money, you feel bad or information. But for every trick they have up their sleeve, you
angry, but there is a limit to how much you’ve lost. can take steps to defeat them. In this exercise, it’s “Them vs.
But if someone steals your identity, you could YOU”! Match the situations on the left with the proper way to
lose a lot more—and face a huge hassle as well. protect your identity on the right by writing the correct letter
in the box.

THEM VS YOU
Defeat them: Shield your PIN so others can’t
A. Pickpockets. An identify thief may steal your
wallet or purse, or take personal documents see it as you type it in. Don’t assume that
from your home. anyone nearby is just another person waiting
to use the ATM.

Defeat them: Shred all documents that show

your account information that thieves could use
B. Skimmers. Some identity thieves are skilled
at skimming. They steal your credit or debit
to open a new account in your name or take
money out of an existing one. Always put bills
card number as your card is swiped through a you are paying directly in a mailbox, or mail
processing machine. them at the post office—don’t leave them for
pickup in your home mailbox.

Defeat them: Take only the cards and forms

C. Dumpster divers: Identity thieves may sift
through your mail or trash to find bills, bank
of ID you absolutely need. Leave all other cards,
checks, and IDs—like your Social Security
and credit card statements, new checks, or
number—at home, hidden in a safe place. Don’t
credit card offers.
leave them lying around, even at home. And
never attach your PIN to your debit or credit card.

D. ATM Peekers. Some identity thieves peek over

your shoulder when you’re using an ATM to get
Defeat them: Frequently check your statements
or online account activity to make sure that all of
your PIN number. They may even set up mini- the charges are ones that you made, and that the
cams to record you keying in your number. amounts are correct.

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