1. what is a budget? 2. do any of you have a WRITTEN budget? 3.
Why are budgets important to have?
Slide 3
1. Why are Theos parents worried about his grades? 2. What does
DR. Huxtable know that his son does not know? How much money does
the regular person in this video clip make? What would this be as
an annul salary? (1985) ($25,000 in 2013) On what and how much did
Theo say he would spend his regular persons salary? How much money
was left over after all the bills were paid? How realistic was Theo
being in the clip? How many of you would be willing to live on
bologna and cereal? How many of you occasionally eat fast food
meals? How much does a meal cost? How much would a month of those
meals cost? Do you think Theos Regular person can live a rewarding
lifestyle on this budget? Why/why not?
Slide 4
1.) To provide for and protect yourself and your family. 2.) To
plan for the future. 3.) To reach your goals.
Slide 5
A study was done of Harvard alumni 10 years after they had
graduated. The survey found that: 83% had NO specific personal or
business goals. 14% had specific goals but they were NOT written
down. 3% had specific goals that were written down. Goal Setting
Survey of Harvard Graduates
Slide 6
PAYOFF: Those with goals not written down earned 3 times as
much as those with no goals. Those who had written their goals down
earned 10 times as much as those with no goals.
Slide 7
No Goals Ignorance Debt Poor investments Inflation Taxes
Procrastination the most common! Roadblocks to financial
success
Slide 8
1.) Short Term Goals (1-2 years) Emergency fund 2.) Medium Term
Goals (5 years or less) Buy a home 3.) Long Term Goals ( 5 years
and longer) Childrens Education Retirement
Slide 9
1.) Decide what you want to do with your money. 2.) Make Your
Plan and stick with it!
Slide 10
What do I want out of life 1. In 8-10 years, what goals will I
want to have accomplished and how do I want to be living? 2. What
will I have to do to accomplish these goals? 3. What roadblocks can
I see possibly having to gaining these goals? How might I overcome
these roadblocks? How can a budget / money management help me
accomplish this?
Slide 11
1. Can you categorize you purchases in any meaningful way 2.
What were the total EXPENDITURES in each of these categories? What
categories did you spend the most? / the least? 3. What were your
REVENUE sources? 4. How many of these purchases gave you something
permanent? (asset) How many are were used up immediately/ quickly?
Did everyone have the same answers in the class? Is that okay?
Slide 12
1. Did your actually spending habits fair well with you goals?
How can you better align your spending to what are priorities in
your life? Are there some spending that you could NOT avoid? Are
there some spending that you will try to avoid? How?
Slide 13
Instead of thinking 8-10 years away, Lets fast forward your
life to your senior year(Prom, graduation, senior trip, driving, no
more McAnullas class every other day..ahhhhhhh) List everything you
will need to spend money on in order to have a fabulous senior
year. Activity at tables 3.2.2..3.2.3..
Slide 14
1. Where will the income (money) for these activities /
expenses come from? 2. How many think that they will be able to do
all of these things with no cost to themselves? / Will you parents
pay for everything? 3. What will be some of the opportunities cost
your parents will have to face because of your senior expenses? 4.
How could you increase your income? 5. What strategies could you
use to reduce your spending? 6. How will a budget keep you on track
for your goals?
Slide 15
You have just been hired for the fabulous career that you have
been working for!!!!! Your starting salary is25,000 -- $2084 a
month __ $480 a week Big money
Slide 16
Uncle Sam gets the first bite of your pay check bwwahahahaha
Gross pay Net Pay Taxes Deductions and Benefits Required and
optional deductions Tax Tables The federal taxes:W2, 1040, 1040 EZ,
State/ local taxes Nicoles and Jacks tax situation
Slide 17
Is it better to get a tax refund or have less taxes withheld?
Support your answer!!!!
Slide 18
Now that you have a more accurate idea of how much money you
actually get to take home. A monthly budget John and Marcias
stories ASSESSMENT: Now you have to do your own monthly
budget!!!!
