An effective principal works collaboratively with stakeholders to develop campus budgets. Collaborating with stakeholders who know the school vision and mission will help to identify current and future school needs and will give input on priorities to develop and create a budget. It should be developed based on campus goals and objectives which are driven by the needs of the school to ensure teacher and student improvement. In addition, an effective principal knows and manages laws and policies related with the school budget in the way that she/he never misappropriates funds. It is the responsibility of the principal to enforce the laws and policies consistently to avoid inadequate use of the budget.