• 50/30/20 Rule:
  • 50% for needs (housing, food, utilities).
  • 30% for wants (entertainment, hobbies).
  • 20% for savings and debt repayment.
• Zero-Based Budgeting: Every dollar is assigned a job (income minus expenses equals zero).
• Envelope System: Allocate cash to specific spending categories using envelopes.

Activities

1. Budgeting Exercise

• Create a mock monthly budget using a given income ($2,500) and list of expenses.
• Practice categorizing items into needs, wants, and savings.

2. Expense Tracking Challenge

• Track all spending for one week using a downloadable worksheet or a mobile app.
• Reflect on where money is going and identify areas for improvement.

Follow-Up Homework

• Finalize a personal monthly budget using the template provided.
• Identify one spending habit to change or improve based on the tracking challenge.