Chapter 10: Budgeting and Saving Money

One chilly third Saturday of March 2019, I met my childhood friends Sarah, James, and Henri at their apartment in Shadyside. "Hi, guys!" I greeted my friends. "Hi, Angel!" Sarah greeted back. "Would you guys like a snack?" James asked. "Sure," I replied. "Ooh, yum!" Henri exclaimed. "Carr's Whole Wheat Crackers." He took a few and gobbled them down. I took a few apples, Sarah took a few carrot sticks, and James took a few celery sticks. We dipped our snacks into feta-mint dip. I had a glass of beer to drink with my apple. "How is your job at Creative Citizens Studio going?" I asked. "And, are you guys still excited about that Ice Cream Intern in the summer?" "Of course, we are going to go to all of our favorite ice cream shops," James told me. "Mercurio's Pizza and Gelato, Klavon's, Millie's Homemade Ice Cream, Gus and YiaYia's, and Remember When Ice Cream," Sarah told me. "Sugar and Spice Ice Cream, NatuRoll Creamery, Betsy's, Dave and Andy's, and the Milkshake Factory," James told me. "Leona's Ice Cream Sandwiches, Page Dairy Mart, Stickler's, Glen's Custard, and Antney's," Henri told me. "Let's not forget Pittsburgh's Best Ice Cream in Oakmont," James reminded me. "Since we are going to have all that ice cream in the summer, we need to eat some healthy snacks now," I pointed out. "Before we get started, we have some important news for you," James stated. "What is up, James?" I asked. "You know how lately we have been talking about work, and we have been making a lot of money at Creative Citizens Studio with our recent drawings?" Sarah asked. "Yes, and what do you guys plan to do with the money?" I asked. "We plan to use it to rent a new apartment in Forest Hills, beginning in May right after we come back from vacation at the end of April," James told me. "That's exciting!" I exclaimed. "But, that means I won't see you guys anymore, and you guys can't drive me home from places anymore, including the Ice Cream Intern!" "Sure, we will," James reassured me. "There are a few buses that stop by our new apartment," Sarah added. "Maybe next weekend, we can take you to see the new apartment." "That would be fun!" I exclaimed. "Since you guys are talking about moving, let's talk about financial health," I continued. "Financial health is having an understanding of your financial situation (where your money is coming from and where it is going) and taking care of it in such a way that you are prepared for financial changes. What factors could influence your financial health?" "Your income, including how much money you make and how many hours you work to make the money," James pointed out. "Expenses, like your bills, debt, hobbies, food and groceries, and health care," Sarah added. "The size of your household, including your partner, parents, siblings, pets, and kids," Henri chimed in. "I would also say location and living within your means," I stated. "Now, what are some signs of financial health?" I asked. "Learning how to manage your money and establishing a personal budget," James replied. "Not living beyond your means," Sarah added. "Learning to not let money be the driving force of your life," Henri chimed in. "Making a plan to pay back your student loans," James replied. "Not getting into credit card debt and trying to pay off the entire balance each month to avoid interest," Sarah added. "Thinking long term by setting up a savings account," Henri chimed in. "Good," I remarked. "Now, let's think about the money we make, the money we have, and the money we spend. What are our goals related to our finances? Do we want or need to make more money than we do now? Are we trying to save up for an item? Are we trying to save to become independent? And, do we have to pay bills?" "I want to throw a surprise party for you, since your birthday is coming up, and since you liked the surprise birthday party that Henri and I threw for you as a kid," Sarah told me. "It would cost money to buy things like pizza and a cake, and party supplies," Henri told me. "Oh, and birthday presents, too!" "James, will you drive me to see your new apartment while Sarah and Henri plan the party for me?" I asked my male friend. "You know, just like when we were kids?" "Maybe," James replied. "Okay then," I replied. "You know, when I graduated from high school, I got a second job to pay for my college tuition to Carnegie Mellon University!" "I had to pay for my CMU tuition, too," Sarah added. "By the way, did you know that we used to live in Squirrel Hill when James and I went to college?" "No, I didn't, Sarah," I replied. "What street was it on?" "A very special apartment on Beechwood Boulevard that was by the Blue Slide Playground in Frick Park," Sarah replied. "If you want, we can drive you by that apartment, too." "As a matter of fact, we have lived in all different kinds of neighborhoods growing up," Henri told me. "So, it seemed like we were on track to meet all of our goals as kids," I stated. "What are some ways that you three stretch your dollar?" I asked. "We buy the cheaper brands, eat at home instead of going out, use coupons like McDonald's, download apps like fast food and Target, shop around, use discounts, order water instead of soda pop, buy secondhand clothes, cut out and back on costly habits, limit music and app downloads, use free public transportation, go to free local events, do a comparison shop, take advantage of sale racks, and borrow books and DVDs from the library with a free library card," James told us. We then did an activity where we wrote down what we spent money on every month, including any rent or bills we paid and any money we had for "fun stuff", wrote down what we made each month from a job or allowance, and saw what the difference was. We also budgeted our future goals, and discussed our future budgets, such as how much we would need to make to support this monthly budget, additional ways to earn extra income, any expenses we could refrain from in order to save money, and any other ways we could reduce costs. "I hope that I can visit you guys more often when you move into Forest Hills, depending on what my mom thinks," I stated. "I would have to ask her what she thinks of Forest Hills, and if it is any safer than Wilkinsburg." "It's not all that bad, and we can still be able to drive you to and from places, if you want," Sarah told me. "Absolutely," I told my female friend. "I would appreciate that." Pretty soon, it was time for me to leave. "Thanks for a great day, everyone!" I thanked my friends. "You're welcome, Angel," Sarah replied. "Bye, guys!" "Bye!"