Making and Using a Budget

A budget is a plan to decide how an individual or family will spend their money each month. Families may be interested in making and using a budget that works for them. The idea of budgeting revolves around knowing what money is coming in and when and what money is being spent and how. Tracking income and spending may allow a family to get a full picture of their budget and plan for future financial goals.

Many families are well-versed in budgeting and are experts in making ends meet! Take a strengths-based approach by recognizing this, and celebrating it as an accomplishment.

Ideas for Action

1. Track income and spending.

Staff can support families in getting a clear picture of their weekly or monthly finances by sharing tools and templates to track money coming in and going out. Suggest ways families could track their income and spending, like gathering their paychecks and bills, or looking at their bank records.

Start the Conversation

"I admire how hard you work, pursuing multiple forms of income with your side business! I have a tool that could help us track all the income coming into your household. Are you interested in taking a look at it together?”
“I have a few tools that can help you track your spending. Would it be helpful if I shared it with you?”

Resources for Families

Income and Benefits Tracker (worksheet)
Spending Tracker (worksheet)

2. Explore options to increase income and/or cut spending.

FEM goals, like saving and paying off debt, often require money. Staff can brainstorm ideas with families to increase their income or make adjustments to their spending to make room for longer-term goals.

Start the Conversation

"Now that we’ve laid out how much you’ve got coming in as income and going out through spending, do you have any ideas on where to increase/decrease either?”
"Were there any spending areas that surprised you?”

Resources for Families

Increasing Income and Benefits (worksheet)
Cutting Expenses (worksheet)

3. Pick a budgeting tool to use.

Staff can help families find budgeting tools that fit their style and needs. Budgeting tools come in all shapes and sizes, from simple templates, and apps that send you automated reminders, to traditional pen and paper.

Start the Conversation

"What is your strategy for allocating your money between your savings and checking account? Would you be interested in automating it?”

Resources for Families

4. Adjust budget when necessary.

Staff can support families in planning ahead for expected expenses like holidays and back-to-school needs. Staff can help families plan for unexpected changes by determining if savings can be a part of their budget.

Start the Conversation

"You mentioned you want to plan for upcoming back-to-school expenses. Would it be helpful to pull up your budget and talk about changing expenses this season?”
“You’re always thinking ahead. What big expenses do you expect to come up in the next three months?”

Resources for Families