TMCC Financial Literacy Guide

3 - WHY IS BUDGETING IMPORTANT? 1 Financial goals are just as important as academic goals, and budgeting will keep you on track. 2 When you have a budget, you will gain a sense of control over your money. 3 Budgets help to avoid impulsive spending and ensure you have enough money for needs. 4 You will be prepared for emergencies because budgeting also encourages you to save money for unexpected events or wants. 5 It will help you achieve fnancial well being. 6 It will help you stay out of debt. WHAT IS A NEED & WHAT IS A WANT? Before you create a budget, it is important to determine what are needs and what are wants. A need is something you must have to survive, like food, water and shelter. A want is something that is nice to have, but not necessary to survive, like products and services. Wants are individualized and are diferent for everyone. INSTRUCTIONS: You will be given $1,000 to live on for one month. The goal is to end the month with money left over. Throughout the game’s one-month period, you will learn how quickly changes in employment, housing, medical costs, emer- gencies, and other expenses can have negative consequences on your budget. Go to PlaySpent.org to play the game!