Spending step-by-step

To make your monthly income last, pay for things in this order.

Step 1
A pile of bills with the caption “Bills.”Pay your monthly bills. There are many potential penalties if you pay late, such as late fees, losing possession of things you’ve bought on credit, even being evicted from an apartment!

Step 2
A living room with the caption “Living Expenses.”Set aside the money you’ll need for your weekly and day-to-day expenses, like groceries and bus fare.

Step 3
A piggy bank with the caption “Emergency Funds.”Put money into savings. Try to build two months of take-home pay for an unexpected financial emergency.

Step 4
A car in a repair shop with the caption “Upcoming Expenses.”Set aside money for larger expenses you know are coming, such as car repairs or appliances.

Step 5
The Eiffel Tower with the caption “Future Goals.”Set aside money for your major future goals whether it’s a home, college education, a new car, or travel.

Step 6
Stacks of money with the caption “Increase Savings.”If you begin to earn more, increase the amount you save as much as you can.


Take your money management skills to the next level by creating your own Spending Plan.

Click the Next button to learn how.