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Budgeting

Budgeting. CALM 20. What is a Budget?. A budget is a plan or process that helps you: pay living expenses  pay off debts  decide what you can afford  save towards your financial goals  have money for the things you want to do.

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Budgeting

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  1. Budgeting CALM 20

  2. What is a Budget? • A budget is a plan or process that helps you: • pay living expenses  • pay off debts  • decide what you can afford  • save towards your financial goals  • have money for the things you want to do.

  3. In other words, budgeting helps you to get as much as possible from each dollar. It looks mainly at the flow of income and expenses. • Budgeting puts you in the driver’s seat. It’s not a rigid set of rules. It’s a tool that you design to give yourself flexibility and choice about how you use your money.

  4. How much money do you have? • The first step in developing a budget is to figure out how much money you have to work with, when that money comes in, and where it comes from.  • What income can you count on getting every month?  • Where does your money come from?  • (examples: Allowance, Job, Paper route, babysitting, etc.)

  5. How much Money do you Spend? • Some of your expenses occur each month and don’t vary too much (These are called fixed expenses) for example: rent or car payments. • The rest of your expenses may change from month to month. (These are called variable expenses) • for example: groceries or entertainment costs.

  6. What’s Your Variable expense? Figuring out how much you spend on variable expenses is a lot of work, but… A great place to start is by tracking your spending for at least two weeks.

  7. Start now by… • writing down everything you spend in a small notebook that fits in your pocket or purse • keeping receipts for everything you buy and transferring these receipts into a file (or throw them into a jar or envelope to sort later) as soon as you get home. 

  8. The Bean Game Work in Groups or 3-4 Complete the handout

  9. The Bean Game • Select 1item in each of the categories with a Star • Once you have selected 1 from each of those categories use the rest of your “20 Beans” on anything • (Draw your “Beans” with a pencil!)

  10. The Bean Game • Why did you choose the items you did? • In what ways were you influenced by your values? Your Goals? Your Previous Experiences? • Compare what you spent your beans on with another group

  11. The Bean Game • Your Income has just been cut to 13 Beans. • What will you give up? • What changes will you make? • Make changes until you only have 13 beans

  12. Lets look at a Budget… • Sample Budget • Would this budget look like yours?

  13. Fill out your own Personal Budget • Take time to fill out the blank budget

  14. Exit Slip • What is one benefit from creating a Budget? • Would you/will you use a budget (now or in the future)? Why? Or Why not?

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