How does the federal government spend its money?

When the federal government spends money on mandatory and discretionary programs, the U.S. Treasury writes a check to pay the program costs. But there is another type of federal spending that operates a little differently.

How is the level of government spending determined?

Many mandatory programs’ spending levels are determined by eligibility rules. For example, Congress decides to create a program like Social Security. It then sets criteria for determining who is eligible to receive benefits from the program, and benefit levels for people who are eligible.

How much does Congress spend on discretionary spending?

These spending levels are set each year by Congress. This pie chart shows how Congress allocated $1.11 trillion in discretionary spending in fiscal year 2015. By far, the biggest category of discretionary spending is spending on the Pentagon and related military programs.

Why do people think about how much money they have?

Think about how much money you have (or don’t have), how much money you earn, the debt you’re in, the standard of living you think is “normal.” This is all because of the certain beliefs you have about money. Most people have such deep rooted beliefs that they think are normal based on the class they’re in.

Why do people have so many questions about money?

In our culture, discussing money is a social taboo and the lack of formal education about finance doesn’t help. We often have questions or just make do with what our parents taught us — and for many people, that’s not enough. Here are answers to 10 basic personal finance questions: What’s a Credit Score? What Is a 401 (k)? What Is an IRA?

What kind of mindset do people have about money?

The person making $10 million per year believes he’s going to do that. It’s all he can see. He knows how to do that. The person making $50k per year believes that maybe $100k per year is the goal, but is really just limited by her own beliefs. You can believe anything you want about money.

Why is money so important in our lives?

Money is something that affects us every single day of our lives. It’s used to pay for our shelter. It’s used to purchase food for our families. It’s used to purchase heat in the winter. It’s used to purchase necessary medical care. The list could go on and on. For being so important, you’d think we’d devote more time trying to keep it.

How to change the way you think about money?

Below is a list of questions that will help you transform how you think about money. Awareness is the first step. Then, you’ll be able to question your beliefs and change them to create a better future. I suggest writing down the answer to each question, or using an online tool / note / app like Evernote.