Money & Debt

A budget is a tool that lists resources coming in and expenses going out. It shows how resources relate to basic needs and regular costs.

A budget can clarify:

• Which bills are most urgent,
• Where spending may be reduced or replaced by assistance programs,
• What information may be needed when applying for free or low-cost help, and
• How resources may be organized to support basic needs.

Budgets can include money and other resources. Some households receive goods, services, or housing through family support, community programs, or barter. Listing these resources shows how basic needs are being met.

Assistance programs often focus on specific needs, such as food, housing, utilities, transportation, medical care, or childcare. Each program has its own rules and application process. A budget can help organize information these programs often request, such as income, monthly expenses, and household needs.

Some budgets show more expenses than income. These budgets still provide useful information. Listing income, expenses, and other resources helps show what needs are not covered and what support may be needed.

Start by writing a budget for the past calendar month. Then prepare one for the current month. After these two months are organized, create a plan for the next month based on expected income and expenses.

Income can include money, property, goods, or services received without repayment. Examples include staying with a family member without paying rent, receiving food from a pantry, or exchanging labor for items.

Loans, credit cards, and other borrowed money are not income because they must be repaid.

Start with money income. Write down:

• Cash received,
• Checks or direct deposits,
• Public benefits or other assistance payments, and
• Money received as gifts from friends or family.

Next to each source, note whether the payment is recurring. Bank records, payment apps, benefit notices, or other financial records may help identify these payments.

Then list non-monetary resources such as food, housing, transportation help, or goods received in trade. Mark whether each resource is recurring.

Group similar resources together to make them easier to read. For example, several food sources may be grouped into one food category.

Keep money income separate from other resources so it is easier to match resources to expenses later.

Expenses usually fall into two groups:

• Expected or recurring costs, and
• Spending that happens during the month.

Begin with predictable costs. Write down items such as:

• Rent, utilities, transportation, insurance, food, clothing, and routine medical care,
• Subscriptions such as streaming services,
• Planned purchases, including gifts, celebrations, or travel, and
• Payments toward loans or other debts.

Next, record how money was spent during the month. Bank statements, receipts, or payment apps may help identify this information. When reviewing these records, also look for any unfamiliar charges. Learn more about Identity theft and coerced debt.

Writing down spending history and debt-related expenses can feel stressful. Some spending or debt may be connected to painful experiences, financial hardship, or abuse. If stress becomes overwhelming, support services are available:

• The Crisis Text Line provides free text, online chat, and WhatsApp services (text HOME or HOLA to 741741 to start), and
• The 988 Lifeline offers free phone, text, and chat support.

For help with domestic violence, including identity theft by household members and other forms of coerced debt, call:

• The Illinois Domestic Violence Hotline at (877) 863-6338, or
• The National Domestic Violence Hotline at (800) 799-7233.

After listing income and expenses, compare them by category.

Match money income with expenses that require money payments, such as rent, utilities, transportation, or loan payments. If there are not enough resources to make required payments on all debts, read Trouble paying bills or visit Debt Help Illinois for help prioritizing.

Match non-monetary resources with needs that they help meet. For example, food pantry visits may match food expenses, and free housing may match rent costs.

This comparison helps show:

• Which expenses are covered by current income or resources,
• Which needs rely on non-monetary support, and
• Where gaps remain between resources and expenses.

The completed budget shows how resources move through the household each month. This information can also be used when applying for assistance programs or other financial support. 

Learn more about:

• Food stamps or SNAP benefits basics,
• Getting temporary financial help with TANF, and
• General assistance basics. 

Budgets work best when they are updated regularly. Income and expenses may change from month to month. Reviewing accounts regularly also makes it easier to catch unauthorized charges and other identity theft Wrongfully obtaining and using another person’s personal data. issues.

Each month, repeat the process:

• List income and other resources,
• Record expected expenses and spending, and
• Compare resources to costs.

Over time, this record shows patterns in income and spending. It also shows how assistance programs, family support, or other resources affect the household budget.