Question: Is your current Spending Plan working for you? Are you making the most of the money you receive? Are you a good manager of your money?
Answer: Only you can answer that question.
Complete Answer: It is safe to say that no two individuals have the same financial situation. We are all unique and our individual financial situations are also unique. There are, however, a few characteristics that are common to good money management (Financial Literacy). Your answers to the following questions will help you determine if your Spending Plan is working for you:
- Can you, and do you, pay all your monthly bills on time?
- Do you have money set aside for a rainy day?
- Is your retirement being funded?
If you answered “NO” to any of the above questions, your Spending Plan needs a little work. Be assured that you are not alone: One third of us are behind on our debts3, about one half of us could not come up with $1,000 in case of an emergency4, and one in three Americans have saved $0 for retirement5.
Financial Literacy Knowledge/Skill: A good Spending Plan will enable you to pay all your monthly bills on time, put money aside for a rainy day, and save for retirement.
Comments or Questions: Thank you for visiting the Financial Literacy Life Skill site. Please feel free to submit comments and questions you may have about managing your money (Financial Literacy).
Next Week’s Topic: Why are you having money problems?