The idea of a budget seems simple enough, doesn't it? Money comes in and money goes out. Usually, though, balancing income and expenses is not that easy. A budget or spending plan can help you manage the family's finances.

Money problems can create a lot of anxiety and stress. They can be a major source of conflict within a relationship. Creating a reasonable budget can relieve some of this stress. It is important for a family to sit down and work on a plan together. This way, each member is involved and given a say in the family's major financial decisions.

Where do you start?

Ask yourself - what are your family's spending habits?

• Do you have a budget or spending plan?
• Are you able to save some money each month?
• Do you feel frustrated and tense when you think about your household expenses?
• Does your money run out before the month ends?
• Do you talk to your partner about money issues?

How do you get better control of your finances:

• Get organized. You will need to take a longer term look at your family's spending habits. Gather your utility bills and invoices for any major expenses you had during the past year. These will help you estimate your yearly expenses. If you don't have them or have moved to a new area, utility companies will be able to give you an estimate of these costs. Credit card companies also maintain records of their card holders' transactions. As well, you will need pay records or a copy of your last tax return. If necessary, your current employer or last employer will be able to give you information about your pay.
• Design a family budget. You can use the sample budget outline given or look for other examples in books, magazines, or Internet sites. You may also want to talk to someone at your bank or look for a course in personal finance.
• Write down your household income from wages, pensions, insurance and tax credits starting with the current month and then record the month's expenses. You may need to search through your checkbook, bank statements and receipts. The more accurate and detailed you can be, the better picture you will get of your financial situation.
• Think about your family's lifestyle and spending habits. Your partner and children should be involved so they will understand and be part of the decisions made.What are the most important things you spend your money on? What could you do without?
• Estimate your family's income and expenses for the next year. You can base it on your current month's budget. Do you expect your income to change during the year? Have you accounted for expenses such as Christmas, holidays and birthdays?
• Find out about your Credit Report. A credit bureau service is available in every province. Call or visit the office to check your credit rating. You will find them listed in the yellow pages or government services pages of your phone book.

Before making a purchase, ask yourself - do you need it or do you want it?