The Diary of Your Money
With Dean

According to a recent survey on behalf of the National Foundation for Credit Counseling by Princeton Survey Research Associates International, children who are taught money skills at home, early
in life, are considerably more likely to track their finances once they reach adulthood.

Not only do many Americans fail to track their expenses, they are also mounting up debt, according to survey results. One-third of respondents admitted to paying less than the full amount due each month on their primary credit cards. Some of those who are less likely to pay off their major credit cards each month include: people with lower incomes, younger Americans, African Americans and Latinos.

By tracking your expenses, you can determine where and how you spend your money. Tracking expenses does not need to be a complicated process. If you are among the majority of Americans who do not track expenses, try the following strategies to get you started:

• If you do not get a receipt, make one.
• Create a system for keeping receipts. You can carry an envelope in your purse or the glove compartment of your car, or tape an envelope to the refrigerator. Keep all of your receipts in the envelope.
• Save receipts for three months and group them by category.
• At the end of the three-month period, add each category and divide by three to determine your average monthly expenditure for each category.

Using a debit card can also be beneficial in helping track expenses. It can be a useful “cash management tool.” If you keep less cash in your pocket and use your debit card, you will be able to track all of your expenses more efficiently. The key is recording each transaction in your check registrar and making notes on your receipts. As an example, if you go to the gas station to fill up your tank and purchase some snacks, you should note on your receipt exactly what you purchased. You may discover that you are not spending your money wisely, or you may find that those extra items purchased at the gas station are taking over your budget.

But beware! A debit card, if not managed properly could cause you a lot of misery, such as the embarrassment of dealing with checks that have bounced and the fees associated with them. So make sure you record each transaction and monitor your balance.

If you do not have a debit/ATM card, come to Credit Union of Atlanta and sign-up for one today! We welcome any opportunity to better serve you and to provide you with information which can assist you in developing a positive financial future.