Personal Budget

Fixed expenses are the expenses that are the same monthly, such as rent or any bills.
Flexible expenses are the expenses that is for other stuff, such as entertainment, clothes, and other fun stuff.
Compound interest is when interest is added onto your principle amount, and the amount of interest is based on the amount in the bank each year.  So if you put $100 into the bank account with 5% interest you will get $5 back the first year, then 5% of $105, and so on.
Simple interest is when interest stays the same every year.  So if you put $100 into the bank and you have 5% interest.  You get $5 every year.
Savings are very important.  If you save a little every month you will have accumulated a greater sum of money, which you could have for important things.
I would tell someone to save as much as possible every month, even if it isn't that much.
It is okay to spend money reasonably, because you need to save for the essentials but still have fun.

 

 This link shows the importance of savings, by students being taught it in schools.
http://www.nola.com/education/index.ssf/2011/02/gentilly_terrace_students_lear.html