To test out your financial knowledge and to get an idea of your spending habits, try to monitor your spending for three months.
During the first month, just record what you normally spend and save so you can get an idea of what your typical budget looks like. Then ask yourself these questions at the end of each month:
- Did you overspend?
- How much did you save?
- Did you accrue debt?
- How much was left in your account at the end of the month?
During the second month, you’ll want to create a budget and commit yourself to paying off any debts you might have accrued in month one and ask yourself those same questions.
When you reach month three, you’ll want to check if there’s been any changes month to month. This activity will give you a chance to truly experience how to handle money and budget effectively for your expenses. This activity will teach you to start living within your means and spending mindfully.