Learning how to save well and spend wisely is a skill anyone would benefit from learning. Creating a budget is one of the best ways to get your finances on track. Encouragingly, that message seems to be sinking in with young Canadians.

According to a recent MasterCard Canada study, 40 per cent of Canadians ages 18 to 34 have a budget in place, ahead of those ages 35 to 65 (33 per cent).

Drawing up a household budget doesn’t have to be complicated, either. Start by recording any and all sources of income you receive each month, which will give you an idea of how much money you have to go around. Then list all your monthly expenses, big and small. This list should include mortgage or rent payments, car insurance and gas, loan or credit card payments, bills and a monthly amount for things like food, clothing, entertainment and other expenses. It’s also a good idea to set aside some money each month for those inevitable extra expenses, like unforeseen car repairs, dental bills or home repairs.

If your expenses exceed your income, you may have to look for ways to cut back or, ideally, increase your income. However, if your income exceeds your expenses you now know how much spare cash you have to use towards saving for things like RSPs, a new car, a new home or other items. By sticking to your budget you can take control of your finances and give yourself some peace of mind.