- Kids Kreative Korner
Does Your Money Have Wings? Here's How to Control It.
By Bonnie Drew
When you work hard to earn your own money, you want to be sure it is managed well. But even when you set goals and make good plans to save and budget, it sometimes seems as if money has wings. Where does it all go?
If you never seem to know where your money goes, try keeping a money diary for a few weeks. Here's how to get started:
- 1. Notebook--Use a small notebook you can carry with
you everywhere. On the first page, write the date and the words
"Beginning Balance." To the right, enter the total amount of
money in your possession today.
2. Spending--Every time you spend money, write the date, the amount, and a description of the expense in your diary. Subtract each expenditure from your balance.
3. Income--Every time you receive money or earn money, write the date, the amount, and the source in your diary. Keep a running total of your balance at all times.
4. Study--At the end of the first week, study the entries in your notebook. Group your expenses into categories such as business expenses, hobby supplies, clothes, entertainment, and food. Add up how much money you spent under each category. Could you spend less money in one area and have more money for something else? What adjustments would you like to make next week?
5. Second Week--Continue your money diary for a second week. At the end of the week, analyze the amounts you spent under each category again. Do you like what you did with your money better this week, or do you want to make more changes?
6. Third Week--Keep the money diary a third week and analyze your spending. By the end of the third week, you should have a very good idea of your strengths and weaknesses with money.
Some young people find this system so helpful, they decide to use it year round.
Bonnie Drew is the author of FAST CASH FOR KIDS (2nd edition), published by Career Press (1-800-227-3371). She is also the creator of the KIDS BUSINESS software for young entrepreneurs, available from Homeland Publications (713-332-9764).
Drew is also Editor of YoungBiz online magazine, published by Kid's Way, Inc., a company that helps youth prepare for business and the workplace of the 21st century. For more information, write to Kid's Way at 5589 Peachtree Rd, Chamblee, GA 30341 or call toll free 1-888-KidsWay (1-888-543-7929). YoungBiz magazine can be found at http://www.youngbiz.com
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