Course Catalog / BMU 040 / Lesson 1 of 5
BMU 040
Lesson 1: Where does the money go? Track one week
Warm up
1. Think of last week. Can you name three things you spent money on?
See the answer
Most people forget small buys. This lesson helps you see them.
Why this matters
Many people get to the end of the month and wonder where the money went. That is normal. Small buys add up fast, and they are easy to forget.
The CFPB gives a simple first step. Keep track of everything you spend for one week. Then look at it and see what you could change. That is what you will do in this lesson.
Start with what you already do
You already keep track of some things. You know when rent is due, or how much gas costs to fill up.
Common belief: I need a lot of money before a budget is worth it.
What is actually true: A budget helps at any income. Consumer.gov says a budget helps make sure you have enough money each month, so you do not run out before payday.
In this lesson you will
- Write down every dollar you spend for 7 days
- Sort each buy into a group, like food or travel
- Find your top two spending groups
Key words
- income
- Money that comes in, like pay, benefits, or child support.
- expense
- Money that goes out, like rent, food, gas, or a phone bill.
- spending log
- A list of what you spent, when, and on what.
Why track first
You cannot plan money you cannot see. A spending log shows you where money really goes. It is not about guilt. It is about facts you can use.
How to track one week
- Pick a tool. Use a notes app, a small notebook, or the log in this lesson.
- Write each buy. Write the day, the amount, and what it was for. Do it right after you pay.
- Count every way you pay. Cash, card, apps, and auto pay all count.
- Keep receipts. Put them in one spot, like an envelope, to check at night.
- Look back on day 7. Add up each group.
| Day | Amount | What | Group |
|---|---|---|---|
| Mon | $4.50 | Coffee | Food out |
| Mon | $40.00 | Gas | Travel |
| Tue | $12.00 | Lunch | Food out |
| Wed | $63.00 | Groceries | Food at home |
| Fri | $15.00 | Movie stream | Fun |
This log is a made up example. Yours will look different.
Text version of this figure
Track one week. Write it, group it, add it up.
- Step 1, Write each buy: Day, amount, and what it was for.
- Step 2, Count all ways you pay: Cash, card, apps, and auto pay.
- Step 3, Group it: Food, travel, bills, fun, and other.
- Add up each group: Find your top two groups.
- Use it: You will build your budget from this in Lesson 2.
Source: CFPB savings booklet; Consumer.gov Making a Budget (Oct 29, 2026).
Worked example: Dana's week
Dana works part time and gets paid every two weeks. She writes down every buy for 7 days.
- Food out: $46, from coffee and lunches.
- Food at home: $63.
- Travel: $40 in gas.
- Fun: $15.
Food out is bigger than she thought. Now she knows where to look first. Dana is a made up example.
Practice: Sort and add
Sort these made up costs into groups: home, food, travel, and fun. Then add each group and mark needs and wants.
- Rent $900
- Bus pass $60
- Streaming service $15
- Groceries $350
- Coffee out, $40 a month
Check your practice: feedback
- Home: rent $900. Travel: bus pass $60. Food: groceries $350 and coffee out $40, so $390. Fun: streaming $15.
- Needs: rent, bus pass, and groceries, $1,310. Wants: coffee out and streaming, $55.
- Wants are fine. Knowing the total helps you choose.
Common mistakes
- Writing buys down at the end of the week. Write each one right after you pay.
- Leaving out card and app buys. Count every way you pay.
- Feeling bad about what you see. The log is facts, not a grade. Use it to plan.
Try it: Start your spending log
Pick your scenario:
- I mostly pay with cash
- I mostly pay with a card or app
- I use a mix of cash and cards
- Pick a notes app or a small notebook.
- Write today's date at the top.
- Write each buy with the day, amount, and what it was for.
- Keep receipts in one spot.
- On day 7, add up each group and circle your top two.
Do it by: for the next 7 days
Reflect
Which kind of spending do you think will surprise you most?
Check your understanding
1. Rosa buys a snack with an app on her phone. Should it go in her log?
- Yes, all ways count
- No, only cash counts
- Only if it is big
See the answer and feedback
A is correct. Yes. Cash, card, and apps all count.
B: Card and app buys count too. Review How to track one week.
C: Small buys add up. Review Why track first.
2. When is the best time to write down a buy?
- At the end of the month
- Right after you pay
- Only on payday
See the answer and feedback
B is correct. Yes. Then you do not forget it.
A: You will forget small buys. Review How to track one week.
C: Buys happen every day. Review How to track one week.
3. Kim pays rent. What is rent?
- Income
- A spending log
- An expense
See the answer and feedback
C is correct. Yes. Rent is money going out.
A: Income comes in. Review Key words.
B: A log is a list. Review Key words.
Takeaway: track it
- Write down what you spend for a week or a month
- Sort needs and wants
- Add each group
- Knowing the numbers helps you choose
Recap
- Track every buy for 7 days.
- Count cash, cards, apps, and auto pay.
- Sort buys into groups.
- Find your top two groups.
You now have: a 7 day spending log with your top two spending groups.
Next up
Next you will turn your log into a one month budget. Go to Lesson 2: Build the budget.
Sources
- CFPB: Building your savings? Start with small goals (booklet) (current as of Oct 29, 2026)
- Consumer.gov (FTC): Making a Budget (current as of Oct 29, 2026)
