Expenses

On This Page, You Will Learn To:

Identify essential versus non-essential expenses
Track your daily and monthly spending habits
Make informed decisions about how to use your income
Adjust spending to stay within your budget

Needs vs. Wants

Understanding the difference between needs and wants helps you spend money wisely and avoid unnecessary stress. Needs are things you must have to live and work (like food, housing, transportation, and healthcare). Wants are things that make life enjoyable but aren't necessary (like eating out, new clothes, or subscriptions).

Why it matters

Knowing the difference helps you plan your spending and helps you save money for future goals. When money is tight, covering needs first ensures stability and helps you avoid debt.

Example:

Grace, who recently moved from Ghana, wanted to buy new shoes after arriving in the U.S., but she realized she needed to pay her phone bill first. By meeting her needs before her wants, she stayed on track with her budget.

✏️ Exercise 2:

Now, reflect on your recent expenses (think of at least 3). Now, take a piece of paper and categorize them as needs and wants.

✏️ Exercise 3:

Now, take time to think about your family's expenses. Which category - Needs or Wants - do you usually spend more on? Do you want to make any changes?

Tracking Your Spending

Tracking your spending helps you understand where your money goes each month. When you know your habits, you can make better choices and find ways to save.

How to Track Your Spending

Keep/take pictures of your receipts
Write down what you spend in a notebook or on your phone
Group expenses into categories
Review your spending at the end of the month and see what adjustments you can/want to make

Helpful Tools

Use a budget app
Some banks automatically show categories in their mobile apps
If you prefer paper, use a chart or envelope system

Example:

Samuel, who moved from South Africa, started tracking his spending after realizing he ran out of money before his next payday. After one month of writing down his expenses, he discovered he spent $60 a week on takeout. Now, he cooks at home three times a week and saves that money for transportation.

Managing Bills and Payments

Paying your bills on time helps you build trust with landlords, service providers, and banks. It also helps to prevent late fees.

Common Bills to Manage

Rent or mortgage
Utilities (electricity, gas, water)
Internet or phone service
Transportation (bus passes, car insurance, fuel/gas)

Tips for Staying Organized

Create a payment calendar: Write down due dates in a notebook or phone app.
Set reminders: Many banks let you set automatic notifications or payments.
Keep records: Save receipts or screenshots for proof of payment.
Ask for help early: If you can't pay on time, contact your landlord or company to set up a plan.

Example:

Aliyah, who moved from Syria, found it hard to remember her new bills each month. Her caseworker helped her set up automatic payments for rent and utilities. Now she feels less stress knowing her bills are paid on time.

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