Money management includes assessing how you manage money, creating a budget and staying debt-free. Learn about tools and worksheets designed to help you set goals and manage your money
to understand how much you need to earn to pay your bills.
for a car, home, college, and/or retirement. Set financial goals and following the plan.
A monthly budget will help you to understand your expenses. It will also help you 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. 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, collect this basic information:
- Monthly cost for housing
- Utilities
- Transportation
- Food
- Insurance
- Debts
- Miscellaneous expenses.
Use the Monthly Expenses Worksheet
(PDF) 
or
Monthly Cash Flow Calculator to help you 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. You must keep track of what you spend each month. Although, when things like car insurance pop up, they can be unpleasant surprises. A better way to deal with these "hidden expenses" is to plan for them ahead of time. Handle them like any other bill. Each month set a fixed amount of money aside in a separate account. You can then use that to pay for hidden expenses when they pop up.
Use the Hidden Expense Calculator . Calculate your hidden annual and monthly expenses.
What is Credit?Credit is a contractual agreement. It allows you to borrow money to purchase things you need. You promise to pay the funds back at an agreed time. It is a temporary loan and must be paid back. Services, like your phone bill, can also be paid for on credit. Common types of credit include mortgages or home loans. Other types of credit include
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. It is very important to know what the interest rate is on a loan, 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. For example, if you miss a payment on a loan, it will hurt your credit score.
The score is based on information that the
three credit bureaus keep on file. A credit score can range from 300 (worst) to 850 (best). As credit 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. Take advantage of this offer 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. A checking account will also help you to pay bills electronically or by mail. Whether you use a
debit card or write checks, you are withdrawing money from your checking account. You set up this account at your bank.
Learn more about how a checking account works .
A monthly balance is the difference between the money you have and your expenses. If your balance is negative (your expenses are greater than your income) you need to reduce your expense. Or you could try and increase your income.
With an income greater than your expenses, you have a positive financial balance. This means you can reach your financial goals. Goals may include saving money for a better car, investing or other future needs. These are good goals to have.
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 4: Take action...one small step at a time
Step 5: Evaluate your progress. 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. They use trained volunteers to present financial literacy information related to the need to save. They also provide information on the benefits of saving and how to save (budgeting).
Access the Budget Builder for Young Adults and College Students. Take the
Money Smart Challenge. Get Real is a financial education program for teens. It draws upon the experiences of actual young adults from a range of backgrounds. Through "Get Real", teens learn how to budget their money. They also learn how to 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. They help women take financial control of their lives. They also want 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. It is used 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:
Social and Retirement Planning Budgeting and Money Management
Foreclosure 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.
- Financial Football - This game turns knowledge of dollars and cents into yards and touchdowns, designed to be played by two teams.
- Money Instructor.com - provides a variety of budget worksheets and lessons.
- GCF - Free Online Tutorials Start learning the skills you need to better manage your money. Online courses include topics such as money management, staying out of debt, retirement planning, and more.