Due: Tracking Your Spending Bell Ringer: What is an impulse purchase ?

1. Due: Tracking Your Spending • Bell Ringer: • What is an impulse purchase?

2. Planning a budget

3. Lifestyle – Pre-budgeting • Lifestyle is a way of living that reflects that person’s attitudes and values • Where will you live? Rent or Own • What do you prefer in clothing? Latest styles, sales, or resale • What are your tastes in food? Eat out, microwave meals or made from scratch • What transportation will you use? Own car, public transportation or biking

4. What are your values? • Savings • Food • Clothes • Sports/Recreation • Church/giving • Car • School expenses • Hobbies • Social Activities • Personal appearance

5. Importance of Budgeting • A budget is a plan for using your money in a way that meets your wants and needs • Helps to control spending and accomplish goals • Not designed to deprive but assist in reaching personal goals

6. What Makes a Good Personal Budget? • Ability to cover basic expenses • Cash for the unexpected • Savings for the future • **Create a budget you can live with!!**

7. Steps in Planning a Budget • 5 Steps to planning a budget • Set your goals • Estimate your income • Estimate your expenses • Plan for savings • Balance and adjust your budget

8. Set your Goals • What do you want to accomplish in the next month? • What is important to you? • Are your goals practical? • It is useless to set a goal to buy a computer in one year if your income per year is less than the computer costs.

9. Estimate your Income • Gross Pay – the total amount of money you earned for a specific time • Deductions – are certain amounts that are subtracted from your pay before you receive your paycheck • Net Pay = Gross pay minus deductions sometimes called take home pay

10. Things that can affect your income level • Education Level • Occupation • Experience • Health

11. Possible Paycheck Deductions • Federal Income Tax • State Income Tax • Retirement • Health Insurance • Social Security • Medicare

12. Estimate your Expenses • Fixed—paid regularly • Rent, insurance, car payments • Variable (Flexible)—amount varies • Food, clothing, gas for car • Discretionary – Expenses that can be cut out completely • Donations, gifts, charity, entertainment

13. Plan for Savings • Help to protect against unexpected expenses • Helps with future wants • Helps with expenses that are higher than you budgeted for • PYF (Pay Yourself First)—10% right when you get your check • Investing – earning money with your savings

14. Balance and adjust budget • Check to be sure that actual expenses are actually meeting costs you budgeted for • Check weekly, monthly and yearly • Either cut expenses or increase income

15. Personal Budget

16. Ways to Stick to a Budget Shop with budget in mind Plan for large purchases so you know you can afford them Negotiate when possible Avoid impulse buying Watch for sales Track purchases

17. Subcategories in your Budget

18. Housing • Payment/Rent • Utilities • Insurance • Property Taxes • Repairs & Maintenance

19. Transportation • Payment • Insurance • Fuel Cost • Repairs & Maintenance

20. Food • Food at Home • Cost of Eating out

21. Cost of Children • Clothing • Healthcare • Child Care • Education • Miscellaneous – sports, hobbies & activities

22. Insurance • Besides auto & house/renters • Health • Disability • Life

23. Other • Credit card debt • Entertainment • Personal Care • Health Care (not covered by insurance) • Apparel & Services • Contributions & Charity • Education & Reading