Financial literacy 101: it's not what you earn--it's what you keep and how you spend it.

• Author: Loncar, Bradley
• Position: SPECIAL SECTION: Junior Achievement - Statistical data

Even if you're rich, you must plan your spending. Everyone has to stay within a budget. Whether you're a movie star or sell popcorn at a movie theater, it's simple: You will have financial problems if you spend more than your net income.

Everyone should try to have a balanced budget. A balanced budget means spending appropriate amounts for your expenses, primarily food, clothing, shelter, transportation, savings, and charity.

How do you know how much to spend in each category? It depends on you and what you value. Some people choose to spend a large portion of their monthly budget on food and entertainment and less on housing and transportation. The best part of a budget is that...