Lenders Get Creative to Reach Borrowers in Default

But it's still too bad that the concept of budgeting is so surprising to this teen.

Budget is a scary word to far too many Americans, but it shouldn't be. All a budget does is ensure your money works for you in the ways you want it to. Think of it as a spending plan or a magic pony savings fund rather than a budget, if you like, but don't think it's only for poor people. It's possible to live above your means no matter how much money you make -- look at MC Hammer.

Budgeting is an essential component of money management for everybody -- rich, poor, or in between. It doesn't mean deprivation (really, truly); it means common sense. It's possible for a budget to contain hundreds or thousands of dollars a month in fun, frivolous purchases. All the budget does is make sure that all your financial goals, fun included, stay met. read more