Read the following article from SpunOut.ie about how young people can budget. Answer the accompanying questions.
MAKING A BUDGET AND STICKING TO IT! TIPS FOR MANAGING YOUR PERSONAL
FINANCES By Juliana Law
It is nice to watch a movie with friends, have a cup of Butlers hot chocolate every morning and give yourself a treat to Paris during term break. Let’s be realistic, no matter how much allowance you’re granted by your parents, you’ll never be able to satisfy all your unlimited desires without creating an overdraft. There are apparent reasons why we, teenagers who have transitioned from children to young adults, should start to keep a habit of financial planning and do our best to stick to it.
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An overdraft is permission from the bank to withdraw more money from a current account than is in the account.
The reasons are simple, because resources are limited and are inadequate to satisfy our unlimited wants. Keeping a budget will make the most of your pocket money and prevent you ending up in debt. It is also a practice of self-discipline and organisation that will bring lifelong benefits.
Here are some suggestions on making financial planning painless and sustainable.
Create a monthly budget This should serve as a blueprint of your monthly expenditure and guide your decision-making when you shop. It should also give a brief outline of essential expenditures and estimate spending. Taking one simple step will help prevent overspending and reminds you to adhere to your allowance.
Smartphone personal finance apps
Free smartphone apps are available nowadays to provide interactive and entertaining tools to aid personal budgeting. There are two types of apps: plan ahead or keep a record of your spending. 1. How can your smartphone help you to budget?
