As Financial Literacy Awareness Month winds down, Michiganders who are worried about inflation or watching their retirement account on the stock-market rollercoaster, may be wondering what they should do.

Economists say many households are still recovering from the economic effects of the pandemic, and fears linger about impending inflation. Creating a spending plan and identifying priorities is a good first step, says Todd Christensen with the nonprofit Money Fit Financial. If you’re considering buying a car or house, or taking a vacation, he says a budget is about more than dollars and cents.

“Whatever it is that motivates you, set a purpose is number one. Number two is not to start adding income. That’s usually where people start, but you’ve got to prioritize expenses. If you don’t prioritize them, you will inevitably have to start eliminating expenses anyway, and you’ll go with your emotions rather than with the rational part of your brain.”

Christensen sees cash, credit cards, and the popular “buy now, pay later” apps as tools that consumers often misuse. It’s that convenience that prompts human nature to kick in and encourage overspending.

Christensen also suggests having two checking accounts — one for automatic bill payment, another for fun purchases — and a savings account for long and short-term goals.