Financial Understanding

• When you plan a home budget, you will better understand how you are spending your money. You can prioritize your spending and identify areas in which you need to reduce your spending while also making more money available for things that you truly need or want.
  
  

Savings

• Without a budget, money that isn't paid toward bills can be spent on things that you really don't need. If you set a budget for things that include entertainment, dining out and hobbies, you'll be able to save extra cash for emergencies and major purchases. Plus, by having a "cushion" of savings, you can reduce the stress that unexpected events, such as medical emergencies, can cause.
  
  

Setting Good Example

• Children learn how to manage money from their parents. If you have children, and keep your expenses within a planned monthly budget, you are teaching them responsible financial behavior.