Money Management

Spending Habits

Looking at your spending habits can help you "find" money to put toward your goals. We often develop spending habits that cost us more than we think they do! Habits like stopping on the way to work to buy a cup of coffee and a bagel, or picking up a magazine once a week at the grocery store, cost us more than we think they do.

The best way to really know what you spend is to track your spending. This means writing down every penny you spend each day. If you write checks for many of your major expenses and use a credit card for most of the rest, you may think you know what you spend. However, ask yourself, "What nonfood items do I buy at the grocery store and think of as food costs?" Also ask, "Where does my cash go? What are all these credit card receipts for from the discount store?" Only by looking at each purchase will you really know where your money is going.

Once you know where your money is going, you can start to spend it differently. Ask yourself, "Can I spend less for coffee and bagels, or can I read my magazine at the library? Can I prepare food at home more often instead of stopping to pick up fast food?" When you find the areas of spending to change, you'll find money to help you reach your goals. You can be in control of your spending, and you'll be telling your money where to go instead of asking where it went!

The expense form below shows categories for typical household expenditures. Keep track of your spending for a week and see if there are areas where you can save.

Expenses for a Week Worksheet (PDF)

U of I Extension provides equal opportunities in programs and employment.
State/County/Local Groups/United States Department of Agriculture Cooperating.

January 13, 2003

E-mail: CFEwebsite@uiuc.edu

Consumer and Family Economics
Department of Agricultural and Consumer Economics
University of Illinois Extension
University of Illinois Urbana-Champaign