Budgets

Keeping a Budget

a couple thoughts• powerpoint lectures, activities,

guided notes, old school notes,reading, reading guides.

• i’m way too lenient with latework. That is going to change.

• trying to spice things up-- butlooking for suggestions.

objective

•understand what a budget isand the steps required tocreate one.

what is a budget?

•a plan about how to spendyour money.–Why do you need a plan?

•give yourself limits indifferent categories & thentry to stick to them.

why bother to make abudget?1. know where your money is

going.2. make sure your expenses <

income.3. identify “problem” areas of

spending.

how do I make abudget?1. track expenses to get estimates.2. make a budget template (or use a

pre-made one).3. track income/expenses.4. analyze results.5. adjust expenses.

what tools do I need?

•paper & pencil.•excel (or other spreadsheet

software).•the “envelope system.”

what might cause abudget to fail?•unexpected expenses.•sudden loss of income.•over-ambitious goals.

budgeting tips• pay yourself first!• if you don’t trust yourself with

a credit card, use only cash.• track your expenses.• expenses must be less than

income for sustainablelifestyle.

want to learn more?• internet resources

– www.thesimpledollar.com– www.getrichslowly.org

• books– Your Money or Your Life– The Total Money Makeover

20 square incomebudget game• You have an “income” of 20

squares.• You must place at least one square

in each of the starred categoriesfirst (required expenses).

• Use the rest of your squares tofinish your budget.

• Be prepared to share.

my 20 square budget• housing- 4 squares• insurance- 4

squares (2 auto, 2health)

• furnishings- 1square

• food- 2 squares

• transportation- 1square

• clothing- 1 square(laundry)

• savings- 4 squares• communication- 2

squares• personal care- 1

square

breaking it down

• how did you decide what tospend your money on?

• how do your values affect yourspending choices? Your goals?Your past experiences?

• learn anything about yourself?

round 2

•your income has beenreduced to thirteen squares.

•erase some selections (youmay also make newchoices).

my 13 square budget• housing- 3 squares• insurance- 3

squares (2 auto, 1health)

• furniture- nosquares

• food- 2 squares• transportation- 1

square

• clothing- nosquares

• savings- 1 square• communication- 2

squares• personal care- 1

square

breaking it down again

•what did you give up?•why?•were there any hard choices

you had to make?

my 2008 expenses

• What do you notice about thesummer months?

• What might change about thisonce I graduate?

• Anything cost more than youexpect?

objective, revisited

•understand what a budgetis and the steps required tocreate one.

•Got it?

leave the classroomwith this…• Budgets help you to reach your

financial goals.• BUT, you have to do what

works for you.• A budget is worthless if you

don’t stick to it, so make itreasonable.