"How to Budget Money" Is a Hit

High schoolers should learn how to make a budget, and personal finance classes should be mandatory in college. In a perfect world. But the reality is, many adults come out of school financially illiterate.

So what do people turn to when their finances are a mess and they don't know how to get them cleared up? Internet searches, of course. Oh, I'm sure some check out books from the library--I fell into that category--but many start with Google.

It's interesting to see what people are searching for on Google, and how those trends change with the times. On eHow of late, personal finance topics are big. A simple how-to on budgeting, How to Make a Budget, has already received hundreds of hits, even though it hasn't been ranked by Google for its main keywords.

In fact, my other recent articles on money topics, such as How to Avoid Paying Private Mortgage Insurance, How to Get Out of Debt Fast and How to Make Money in a Recession are also popular. As you see, they're timely topics.

If you're concerned about your writing career surviving tough financial times and a possible recession, look for a niche that will explode, and get writing now. The finance and money topics will be done to death, so be creative. What aspects of life will change in an economic downturn? What specific areas will people try to save money in? Niche and grow rich.

Rising Grocery Prices Mean Budget Adjustments

After years of relative flatness, rising grocery prices are affecting families everywhere, and many people are finding ways to cut back in the supermarket. Gas prices are on the rise as well, despite the Feral Reserve's insistence that inflation is under control. Since it's easier to cut food costs than fuel expenses, rising grocery prices mean budget adjustments for many.

I was at Trader Joe's the other day, and noticed several fairly recent price increases, from frozen fish to children's multivitamins ($2.99 compare to $1.99 in the fall). I skipped the multivitamins this time, as we still have two bottles. The 100% cranberry juice I used to buy for $3.99 was $4.49; it stayed on the shelf. However, their natural creamy peanut butter is still $1.69, an excellent buy compared to the lowest price I can find elsewhere. I also stocked up on several spice blends holding steady at $1.99 a jar.

Rising grocery prices are most noticeable on grains (flour, bread, cereal) and dairy products (milk is at an all-time high and yogurt at TJ's had increased quite a bit.) As diesel prices rise, expect to see rising grocery prices across the board, in every aisle and on every shelf.

My Trader Joe's shopping trip hit home to me. Even as prices rise, our wages are flat. There is less money to spend on necessities and luxuries alike. More and more Americans are sitting up and taking notice, and becoming more careful with their spending.

How do you cope with rising grocery prices? Have you increased your grocery budget and cut back in other areas? Or are you becoming a more frugal shopper?

The Family Budget: Making it Work

I confess, I'm a bit of a nerd when it comes to money. I like to have a neat family budget, with all bills, spending categories and income sources duly noted. I allocate the money, my husband looks it over, and together, we try to stick to our family budget each month. Oh, I wasn't always this way. In fact, I'm still paying off the credit card debt we incurred before we read Dave Ramsey's Total Money Makeover book.

I look back in annoyance with my old ways of handling money and the cavalier way we added so much unnecessary debt to our lives, but I try not to dwell on it. Following Dave Ramsey's suggestion, we now make a spending plan each month, a “zero-based” budget. The amount going out has to equal the amount coming in, with a net of zero. Yes, you still save money and even invest (when debt-free) but that is part of the family budget and counts as outgo.

As a work at home mom (WAHM), a careful budget is especially important because I want to make sure the time I'm spending earning an income is going to good use. Knowing how precious my time is, wasting money on things we don't need bugs me more now than when I had an office job and no kids.

So how do you make a family budget friendly enough for a skeptical spouse and reluctant teenagers? Start by getting your spouse on the same page so you can tackle the rest of the family as a team. Make some time each week to discuss finances with your husband. Try these resources together:

*My Total Money Makeover

*Financial Peace University

*The Envelope System

With your spouse, plan out a family budget you both can live with. Allocate the set bills first, as that is easy to do (your monthly housing and debt payments should be consistent, and use the average for fluctuating electric bills and the like). Next, your disposable income. Include:

• Food (estimate $100 per person per month to start)

• Transportation (gas & oil, tolls, bus fares)

• Clothing, shoes

• Tuition, dues, subscriptions

• Household (cleaning products, repairs)

• Extra money (gifts, personal, etc.)

If you find your outgo exceeds your income, you need to Earn Extra Money. Also check out How to Save Money and Get Out of Debt.

If you have older children, it's time to get your teens on board. It's essential that you be open with them and ask them to pull together as a teem to make the family budget work. Older teens with jobs may need to pay for their own gas and clothes and even contribute something to the grocery budget, especially if you and your spouse are trying to pay off debt and get finances in order. Younger teens and children can help with extra chores if parents will be working overtime or from home to increase income.

What successes--or pitfalls--have you experienced with a family budget at your house?