FINANCIAL LITERACY

<p><span style=background-color: rgba(255 255 255 1); color: rgba(83 90 98 1)>Understanding your finances and budgeting is a critical part of financial literacy which helps you make smart decisions about your money. Financial literacy includes understanding budgeting credit investments and retirement planning. A key element of managing finances is budgeting especially as many people live paycheck to paycheck struggling to balance their income and expenses. A budget is a financial plan that compares your income (earnings) with your expenses (spending). Historically people tracked budgets manually but today many use spreadsheets or budgeting apps for efficiency.</span></p><p><span style=background-color: rgba(255 255 255 1); color: rgba(83 90 98 1)>One popular method for budgeting is the 50/30/20 rule: 50% of your income should be spent on needs (housing utilities etc.) 30% on wants (entertainment dining out) and the remaining 20% should be saved. This method helps manage spending while ensuring you are saving for the future.</span></p><p><span style=background-color: rgba(255 255 255 1); color: rgba(83 90 98 1)>As a teenager your financial picture will likely differ from when you're an adult especially if you're living at home with your parents. Many of your costs such as housing and utilities may be covered. However once you start living independently your financial responsibilities will increase. Even if you have a modest income now learning to budget will help you save and prepare for the future.</span></p>