Financial Literacy Month 2026: Budgeting Tips to Build a Healthy Foundation

A strong budget is the foundation of financial wellness — here are eight tips, plus resources to help you build one that actually works for you.

1. Take control of your money with a budget.

Creating a budget is one of the most effective ways to see where your money goes each month and identify opportunities to adjust your spending so you can reach your financial goals.

2. Know your monthly income

To create an effective budget, it’s important to know how much you actually take home each month. If your income varies, estimate an average based on the past few months.

3. Calculate your monthly expenses

Review bank and credit card statements over the past three to six months to get an idea of what you typically spend each month.

4. Separate Needs vs. Wants
Understand the difference between essentials and extras. Needs are things you must pay for to live: like housing, groceries, and utilities. Wants are non-essential items like dining out, subscriptions, or entertainment.

5. Reduce your monthly spending

Look for small ways to cut back on monthly expenses—like canceling unused subscriptions or limiting impulse purchases—to free up more money for savings and financial goals.

6. Set a small savings goal
Even saving $10–$20 regularly builds the habit. Consider keeping your savings in a high-yield account to earn more interest as your balance grows, like Experian’s Digital Savings Account.

7. Pick a budgeting plan that works for you
Choose a budgeting plan that fits your lifestyle and spending habits, whether it’s a simple 50/30/20 approach or a more detailed method, so you’re more likely to stick with it over time.

8. Stick to the plan
Stick to your budget by checking in regularly and adjusting as needed to stay on track. Consistency is key, and small, steady efforts can lead to lasting financial progress.