Money management includes assessing how you manage money, creating a budget and staying debt-free. To learn about tools, and worksheets designed to help you set goals and manage your money
A monthly budget will help you to understand your expenses, and choose a career that meets your financial needs.
Follow the steps to determine your monthly or annual salary.
Step 1: Locate a recent paycheck stub.
Step 2: On the paycheck, find the word Salary or Wages and note the amount.
Step 3: If you get paid every two weeks, multiply that number times two (2) to determine your monthly income. OR If you get paid every week, multiply that number times four (4) to determine your monthly income.
Step 4: Multiply your monthly income by twelve (12) to determine your annual income.
Learn how to convert your hourly wage to an annual wage. To calculate your expenses, you need to collect this basic information:
- Monthly cost for housing
- Utilities
- Transportation
- Food, insurance
- Debt obligations
- Miscellaneous expenses.
Use the Monthly Expenses Worksheet (PDF) or Monthly Cash Flow Calculator 
to help you to calculate your monthly income and expenses.
Money Management Calculators Select from many calculators that can help you understand and manage your finances.
It is not difficult to figure normal monthly expenses by keeping track of what you spend each month. But when things like car insurance or a property tax bill pop up, they can be an unpleasant surprises. A better way to deal with these "hidden expenses" is to plan for them ahead of time. Handle them on a monthly basis just like any other bill. Each month simply set a fixed amount of money aside in a separate account to pay for hidden expenses when they pop up.
Hidden Expense Calculator will help you to calculate your hidden annual and monthly expenses.
Manage your money with a checking account to keep your money safe, pay bills, build and keep a good credit rating
. What is Credit?Credit is a contractual agreement that allows you to borrow money to purchase things you need when you need them. You promise to pay the funds back at an agreed time. It is a temporary loan and must be paid back. Services can also be paid for on credit such as cable and telephone services. For example, if you use telephone or cable services for a month or two and then pay for them at the end of that period, you are receiving services on. Common types of credit include mortgages or home loans as well as
personal loans or lines of credit.
A line of credit allows you to have money available when you need it. Most credit accounts will require that you pay interest on unpaid balances, and it is very important to know what the interest rate is before you sign a credit agreement. Knowing this will help you pay off your loan on time.
What is a Credit Score?
Your credit score is what lenders use to determine what kind of a credit risk a borrower might be. If you miss a payment on a loan, for example, it will hurt your credit score.
The score, which falls within a range of 300 (worst) to 850 (best), is based on information that the
three credit bureaus keep on file. As this information changes, the credit score will change.
Forbes.com provides information on improving your credit score, including
seven steps to a higher credit score .
You can request a FREE credit report from the credit bureaus once each year. You should take advantage of this offering to review your information and insure it is accurate. This helps you keep a good credit rating.
CLICK HERE to request your free credit report. A checking account allows you to easily buy things without carrying around cash. Having a checking account is a good way to keep your money safe and to pay bills received. A checking account will also enable you to pay bills electronically or by mail. Whether you use a
debit card or write checks, you are withdrawing money you have deposited into an account, which you set up at your bank.
Learn more about how a checking account works.
Save money for car, home, college, and/or retirement by setting financial goals and following the plan.
A monthly balance is the difference between your available money and your expenses. If your balance is negative (your expenses are greater than your income) you need to reduce your expenses or increase your income. With an income greater than your expenses, you have a positive financial balance and reach your financial goals of having money for a better car, investing or other future needs are good goals.
Steps for Financial Goal Setting:
Step 1:
Write down your financial goals (PDF) - include a date by which you would like to achieve it
Step 2: Breakdown the goals into small, achievable steps
Step 3: Create a plan of action - determine what is the most important financial goal, the next most important, and so on...
Step 5: Take action...one small step at a time
Step 4: Evaluate your progress and make changes as needed to meet your goals
You may know some senior citizens who were unable to save money for retirement. Their lives would be easier now if they had planned ahead.
The
Young Illinois Saves program is designed to motivate teens and young adults to save using trained volunteers to present financial literacy information related to the need to save, the benefits of saving and how to save (budgeting).
Access the Budget Builder for Young Adults and College Students - and take the
Money Smart Challenge. Get Real is a financial education program for teens that draws upon the experiences of actual young adults from a range of backgrounds. Through Get Real, teens learn how to budget their money, build their credit record, save and invest in the "real world."
The
Women's Institute for a Secure Retirement works to provide low and moderate income women (ages 18 to 65) with basic financial information aimed at helping them take financial control of their lives and to increase awareness of the structural barriers that prevent women's adequate participation in the nation's retirement systems.
Wi$e Up - Women's Bureau, U.S. Department of Labor has a flexible, self-paced financial education curriculum to help Generation X and Y women save for the future.
Money management for an individual or a family can be the key to success. Choose from the following sites to help you manage your finances:
Money Management Calculators
Social and Retirement Planning Budgeting and Money ManagementForeclosure Intervention
Financial Aid Resources
Learn about Investing and Managing Your Money
- Financial Soccer - Financial Soccer is a fast-paced, multiple-choice question game, testing players' knowledge of financial management skills as they advance down field, and try to score goals.
- Financial Football
- This game turns knowledge of dollars and cents into yards and touchdowns, designed to be played by two teams. Have fun while learning about the fundamentals of investing and defensive spending. - Money Instructor.com - provides a variety of budget worksheets and lessons.
- GCF - Free Online Class! Start learning the skills you need to better manage your money, including topics such as money management, staying out of debt, retirement planning, and more.