Budgeting Based on Your Learning Style

There are hundreds of budgets and budget options out there. And according to a Gallop poll, more than two-thirds of Americans do not budget. But how do you figure out what the right budget is for you? The following is by no means comprehensive, but takes into account various learning styles and the types of budgets that might best suit each one.

Visual learners

These folks learn best when they can see pictures and images. Graphs, charts and other visualizations of their money will help them see where their money is going and how it’s being spent. These types of learners are in luck — most budgeting programs cater to this style of learning.

These include budgets that break things down into simple-to-understand pie charts:

Oprah’s Debt Diet

• 35% goes to housing. This includes your mortgage or rent, maintenance, taxes, utilities and insurance.
• 15% to debt repayment. This is student loans, credit cards and personal loans.
• 15% to transportation. This includes auto loan payments, gas, insurance, repairs, parking and tolls, and train or bus tickets.
• 25% to other living expenses. This is for entertainment, clothing, gifts, eating out, and vacations.
• 10% to savings.

Auditory learners

Auditory learners absorb information by listening. Unfortunately, there aren’t a lot of budgeting strategies that take this learning style into account. By its very nature, a budget is visual.

Since sound, music and oral information helps these learners — they should consider listening to a budgeting seminar or a book on tape that clearly lays out different ways to budget.

Some of the top selling books currently on the market (and available in audio form) include:

• How to Manage Your Money When You Don't Have Any, Erik Wecks
• The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness, Dave Ramsey
• The One-Page Financial Plan: A Simple Way to Be Smart About Your Money, Carl Richards

These learners can also set up budgeting reminders with a special tone on their phone or create a budgeting playlist that plays in the background every time they budget.

Social learners

Social learners who learn best in groups or with other people should also consider taking a seminar or joining an online forum that follows specific budgeting philosophies. This allows them to ask questions and interact with others. Tech CU offers a wide variety of free seminars throughout the year covering such topics as retirement planning, funding an education and investment strategies.

Physical

Movement and physical touch helps these learners retain information. The envelope budgeting system might work best as it allows you to physically touch your money and know where it’s going.

The envelope budgeting system is simple. Withdraw enough cash to cover your monthly expenses. Put the appropriate corresponding amount for each of your budget’s categories in a separate envelope. Then spend accordingly. Once the cash is gone, you can’t spend any more money in that category.

Regardless of how you learn, there is a budget and style out there that will work for you.