The first step to gaining financial literacy is learning how to budget. When you have a budget plan, you can spend money accordingly and will be able to save any extra to use later in case of an emergency. Without a budget plan, you will be unable to control your spending and, as a result of this overspending, may suffer if your salary or allowance ends. In order to make a budget plan, you first need to note your monthly income and, second, track your spending. You need to include all your fixed expenses like your mortgage or rent, utility bills, loan payments, etc., and then include variable expenses such as groceries, entertainment, etc.