How will a budget help me and my family?
At its simplest, a budget is just a record of how much money you have coming in and going out.
Tracking your income and outgoings helps you:
- make the most of the money you’ve got
- cope with unexpected costs
- feel more confident about managing your cash.
Once you get the habit, budgeting is a way to live within your means, manage your financial commitments, and reach your money goals – all of which can leave you better off. Watching how you spend, save, or plan for the future is a great way for children to start learning money skills at home, too.
You don’t need any special equipment or maths ability to make a budget: pen and paper, a calculator, your computer’s spreadsheet programme, or a budgeting app are all fine. Once you’ve picked whichever works for you, this article explains what to do.
The Money Advice Service also has a detailed online budget planner that can do all the sums for you.
