BudgetingHow to manage your money

Guessing GameQuestion 1

How much a much do you think gas for one car costs

each month?

Answer

$30 a week $120 a month

Truck $60 a week $240

Question 2

How much do you think an average car payment costs per month?

Answer

It depends on the car, how much money you put down, and the interest on your car loan

A 7,000 car, 3 year loan plus interest =$260 a month

Question 3

How much do you think car insurance is?

Answer

It depends on your car, driving record, and how much coverage you have.

On average at least $70 a month

Question 4

If you had to guess, how much do you think it costs each month to buy groceries for one person?

Answer

Living modestly $50 a week

$200 a month

If you eat out once or twice a week $275 a month

If you eat out a lot $350-400 a month

Question 5

How much do you think it costs to rent a house or apartment per month?

Answer

For a one bedroom apartment $475-700

Two bedroom $700-900

House (depends on size)

More than one bedroom probably $900-1400

Question 6

How much do you think renter’s insurance costs?

Answer

About $50

Question 7

What are utilities?

And how much do they cost per month?

Answer

Gas if not being used to heat $40

Using heat will add $90 a month

Water and Trash $15

Electric $40 using AC add $70 a month

*depends on the size of apartment or house

Total the average costs of utilities a month =$150-200

Question 8

How much do you think it costs to own a cell phone

each month?

Answer

At least $80-100 a month for one person

$50 if on someone else’s plan

Question 9

How much do you think Internet costs?

Answer

Internet costs about $40 a month

Question 10

How much does cable cost per month?

Answer

Cable costs approximately $50

Cable and Internet together $90

Question 11

How much do you think it costs to have a baby?

Answer

Average costs just for hospital costs while being pregnant and giving birth $10,000

Cost of a baby each month $300

Question 12

How much do you think the average person spends on entertainment per month?

Answer

About $200

Question 13

Say you’re sick and you go to the emergency room and you have no health insurance. How much do you think an ER visit costs?

Answer

Around $450 or more depending on what you have done at the ER

and depending on insurance

Question 14

How much do you think health insurance costs?

Answer

For average coverage $150-200

Question 15

What are some other payments that we have not yet included?

• Clothes

• Shoes

• Furniture

• Special Occasions (birthdays, Christmas)

the budgeting processphase 1: Assess your personal and financial situation (needs, values,

life situation).

Phase 2: Create a budget for fixed and variable expenses based on projected income.

Phase 3: Monitor current spending (saving, investing) patterns.

Phase 4: Compare your budget to what you have actually spent.

Phase 5: Review financial progress and revise budgeted amounts.

teens – lesson 3 - slide 3-A

goal-setting guidelines Well-written personal and financial goals SHOULD:

• Be realistic A student working part-time is not likely to be able to afford a new car every couple of years.

• Be specific“I want to save $2,000 to buy a car.”

• Have a timeframe“I want to pay off my credit card within the next 18 months.”

teens – lesson 3 - slide 3-B

teens – lesson 3 - slide 3-Ca

income budget actual difference

Job #1 $ $ $

Job #1 $ $ $

Other $ $ $

total monthly income

$ $ $

expenses budget actual difference

fixed regular expenses

Rent $ $ $

Car insurance $ $ $

Car payment $ $ $

Credit card $ $ $

fixed irregular expenses

Savings $ $ $

Food $ $ $

Utilities $ $ $

teens – lesson 3 - slide 3-Cb

expenses budget actual difference

transportation

Bus fare $ $ $

Gas and oil $ $ $

Parking and tolls $ $ $

Repairs $ $ $

other

Medical expenses $ $ $

Clothing $ $ $

Entertainment $ $ $

Household items $ $ $

Personal items $ $ $

Tuition $ $ $

School expenses $ $ $

total monthly expenses

$ $ $