1 / 27

Make Your Money Matter: Use a Budget

Make Your Money Matter: Use a Budget. Facilitator’s Name Date. Objectives. Discuss factors that influence spending. Define a budget . (a.k.a. spending plan) Explain why a budget is key to financial stability, financial security & acquiring assets .

thuong
Download Presentation

Make Your Money Matter: Use a Budget

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

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

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

  3. Best and Worst Decisions Activity 1: Write Your Best Money Decision Write Your Worst Money Decision

  4. 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

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

  6. 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

  7. Examples-SMART Goals • Short-term (Less than 1 year); • Mid-term (1-5 years or less) • I will save $25 each month for 2 years for a washing machine costing $600 or less. • Long-term (more than 5 years) • I will save $200 each month for 6 years to fully fund my emergency fund to $14,400. Activity 2: Write 2-3 personal financial goals.

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

  9. 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.

  10. 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.

  11. 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

  12. Fixed Expenses Stay the same each month • Rent • House payment • Utility bills on budget plans • Savings and investments • Loan payments • Retirement contributions • Car payment • Monthly prescriptions • Insurance payments

  13. Variable Expenses • Food/Groceries • Gas • Credit Card payments • Charaties/Donations • Child/Elder Care • Dry Cleaners/Laundry • School expenses • Health Care expenses • Repairs • Hair/Manicure/ Massage • Pet care • Movies/Sport events • Vacation • Parking/Tolls • Cable/Gas/Water • Miscellaneous spending Change or vary each month

  14. PeriodicExpenses Come one or more times each year at predictable times YRRP Website for Handouts: Make Your Money Matter, Use a Budget http://www.yellowribbon.mil/event-support • Taxes • Property taxes • Clothing/Uniforms • Tuition • Birthday/Anniversary/ Holiday gifts • Health Care costs • Pet care • Car registration • Big ticket items • Trash/garbage bill

  15. Budget Worksheet #1

  16. Budget Worksheet #2

  17. How Much to Spend Per Category YRRP Website for Handouts: Make Your Money Matter, Use a Budget http://www.yellowribbon.mil/event-support

  18. 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

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

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

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

  22. 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?

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

  24. 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.

  25. 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

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

More Related