Title: Develop a personal budget.
Course: Personal Finance (19262-II) > Section: Demonstrating Knowledge of Personal Financial Planning

Development of a personal budget should include

- recognizing the importance of saving
- using a budgeting ratio model, such as 50-30-20
- writing a statement of short-, medium-, and long-term financial goals
- creating a plan for managing one’s money over a short period of time
- outlining a long-term plan for managing money
- creating an emergency fund.

Budget should allow for discretionary income (e.g., what is available after paying for essentials) and take into account the impact of cost-of-living increases and inflation.