Upload
fearghus-frain
View
19
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Introductions. Instructor and student introductions Module overview. Student Introductions. Your name Expectations, questions, and concerns about budgeting. Purpose. Money Matters will help you: Get a handle on how you spend your money. - PowerPoint PPT Presentation
Citation preview
Money Matters 1
Money Matters 2
Introductions
• Instructor and student introductions
• Module overview
Money Matters 3
Student Introductions
• Your name
• Expectations, questions, and concerns about budgeting
Money Matters 4
Purpose
Money Matters will help you:
• Get a handle on how you spend your money.
• Prepare and follow a personal spending plan or budget.
Money Matters 5
Objectives
By the end of this course, you will be able to:
• Track daily spending habits.
• Prepare a personal spending plan or budget to estimate monthly income and expenses.
Money Matters 6
Objectives (Continued)
• Identify ways to decrease spending and increase income.
• Identify budgeting tools that will help you manage your money.
Money Matters 7
Agenda and Ground Rules
• One hour long
• One 10-minute break
• Training methods
• Class participation
Money Matters 8
Budget
A step-by-step plan for meeting expenses in given period of time.
Also called a “personal spending plan.”
Money Matters 9
Benefits of Budgeting
• Reduces money-related anxiety.
• Gives you control of your financial situation.
• Helps you build assets to improve your quality of life.
Money Matters 10
How to Prepare a Budget
1. Track daily spending.
2. Determine income and expenses.
3. Find ways to decrease spending.
4. Find ways to increase income.
Money Matters 11
Daily Spending Diary
Day What did I spend my money on today?
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Money Matters 12
Income
• Wages• Public assistance• Child support• Alimony
• Interest• Dividends• Social security• Other sources
Money Matters 13
Gross vs. Net Income
Gross income = Total income without deductions
Net income = Gross income minus SS, taxes, other deductions
Money Matters 14
Social Security Benefits
Social Security covers:
• Retirement
• Disability
• Family
• Survivors
• Medicare benefits
Money Matters 15
Social Security Statement
A record of:
• Your earnings.
• Social Security taxes you have paid during your working years.
• Estimate of monthly retirement, disability, and survivor benefits.
Money Matters 16
Fixed vs. Flexible Expenses
Fixed expenses = Expenses with amounts that don’t change from month to month.
Flexible expenses = Expenses with amounts that may change from month to month
Money Matters 17
Tax Credits
• Earned Income Tax Credit (EITC).
• Child tax credit.
• Credit for Child and Dependent Care Expenses.
• Education credits.
• Tax credits for retirement savings contributions.
Money Matters 18
Recordkeeping Tips
• Keep records in a safe place.
• Keep files organized.
• Keep tax records for at least 3 years.
• Send your bill payments before they are due.
Money Matters 19
Budgeting Tools
• Monthly payment schedule
• Monthly payment calendar
• Expense envelope system
• Budget box system
• Computer system
Money Matters 20
Monthly Payment Calendar
Month - _______
Sunday Monday Tuesday Wednesday Thursday Friday Saturday 1
2
$2,000 pay check $100-savings $40-food $150-personal
$25-savings
3
$160 transportation
4 5
$800 child support
6
$1,000 rent
7
8
9
10 11 12 13 14
15
16
$40 phone bill
17 18 19 0
$200 credit card
21
22
23
24 25 26 27
28
$550 child care
29
30
Money Matters 21
What To Pay First
• Rent or mortgage
• Utilities
• Food
Money Matters 22
Loan Payment Decisions
• Pay off loans with the highest interest rate first.
• Talk to your creditors.
• Get credit counseling.
• Enroll in a debt management plan.
• Consider bankruptcy only as a last resort.
Money Matters 23
Practice Exercise: Budget Considerations
Instructions:
• Read the scenario.
• Answer the questions.
• Be prepared to explain your answers.