Make Your Money Matter: Use a Budget

1. Make Your Money Matter: Use a Budget Facilitator’s Name Date

2. Objectives • Discuss factors that influence spending. • Define a budget . • Explain why a budget is key to financial stability, financial security & acquiring assets. • Identify and describe the budgeting process steps.

3. Factors Impacting Spending • Needs- essential for daily living • Wants-nice, but not necessary • Values- beliefs, what is worthwhile, desirable, or important to you • Goals- what we want to achieve

4. Identifying Values What do you value in your life? To identify values, look where you spend your time and money.

5. SMART Goals SMART Goals Specific Measurable Attainable Realistic Time Bound State State the Determine Set a goal State when exactly dollar how it can that is the goal will what w ill amount be reached realistic for be reached be d one your situation and income

6. Goals and Family • Family buy-in and cooperation are critical to reaching financial goals.

7. What is a Budget? • A guide for spending money that is used to record planned and actual spending over a period of time. • Plans should be written on paper or electronic. • Tell your money where to go instead of wondering where it went.

8. Why Develop a Budget? • Control spending on family priorities/goals. • Provide a ready made excuse for financial decisions. • Create long term financial security. Acquire assets. • Helps you to live within means/income. • Reduces family stress. • Reduces need for credit.

9. Budget Components & Categories • INCOME • Wages/Salary • Alimony • Child Support • Retirement income • Social Security • Public Welfare • Disability income • EXPENSES • Savings/Emergency • Food • Housing • Utilities • Transportation • Insurances • Clothing

10. Fixed Expenses • Fixed: stay the same each month • Rent, house payment, utility bills on budget plans, savings

11. Variable Expenses • Variable: changes or varies each month • Groceries/food, non-budget plan utility bills

12. PeriodicExpenses • Periodic expenses: expenses come one or more times each year at predictable times. • Auto insurance, property taxes, water bills

14. Budget Worksheet #1

15. Budget Worksheet #2

16. How Much to Spend Per Category

17. How to Create a Budget • Step 1--Track current income and expenses • Use a small notebook to record expenses • Keep receipts • Use cell phone note pad • Use debit card records

18. How to Create a Budget • Step 2—Create personal income & expense categories • Customize to suit your expenses.

19. How to Create a Budget • Step 3—Allocate your income for the expenses • Income minus expenses should equal 0

20. How to Create a Budget • Step 4-Use the plan • Look for changes that can be made or that need to be made

21. How to Create a Budget • Step 5-Evaluate the plan and adjust • Are you reaching your goals? • Are there plan changes that can be made?

22. Objectives • Discuss factors that influence spending. • Define a budget . • Explain why a budget is key to financial stability, financial security & acquiring assets. • Identify and describe the budgeting process steps.

23. Budgeting Tips • Don’t discount impact of small expenditures. • Use the wait and remember technique to curtail impulse spending. • Cut a routine expense for a period of time. • Read articles and books with cost cutting ideas. • Spend within your means. Don’t spend money you don’t have. • Keep track of the pennies and you will worry less about the dollars. • Using a budget can increase financial stability, security and acquire assets.

24. Closing Thought “Any man can make money, but it takes a special kind of man to use it responsibly.” A.G. Gaston, Businessperson 1892-1993

25. Make Your Money Matter: Use a Budget Facilitator’s Name Date