1. What does it mean to Budget? _____________ your money Plan how to _____________ or _______________ __________ vs. _________ Based on _______________ income and expenses Use __________________ to prepare

2. How Do You Prepare a Budget? Step 1: Analyze your spending for one ____________ (where does your money go?) Step 2: Create a spreadsheet based on _____________ habits Step 3: Designate money to specific __________ (how much is needed?): o Variable expenses o Fixed expenses o Charitable giving Step 4: Balance the budget (___________ if necessary)

3. Be Sure to Pay Yourself First! Before designating money in different categories, take a __________ amount for yourself and put it in your ______________ account. Remember, a little goes a long way! Amount SavedInterest Earned10 Year Future Value $7.005%$4,720 $21.005%$14,160 $35.005%$23,600

4. 70-20-10 Strategy Spend _____% of your income Save _____% of your income Invest ____% of your income

5. Budget Analysis Make sure every dollar has a __________ on paper before you receive it! Not everything will go as planned –Especially the first couple of months Variances will occur –Difference between ____________ and _____________

6. Record Keeping __________ –Pen and paper –Keep it somewhere safe ________________ –Using software such as Quicken –Microsoft Excel (encrypt) –Google Docs

7. Personal Budget ________________________Monthly Work (part-time)$120.00 Allowance for household chores40.00 Lunch money allowance60.00 Savings account interest 2.00 Total income$222.00 ________________________ Deposit to savings account$ 22.00 ________________________ Gifts$ 20.00 Clothes and shoes60.00 Loan payment to parents20.00 Lunches60.00 Entertainment/miscellaneous 40.00 Total expenses$200.00 Total savings and expenses $222.00

8. Where Can You Get Good Financial Advice? Financial _________ ___________ and magazines Seminars and workshops Financial _________

9. How Can You Protect Financial Resources? Deal _______ with financial advisers you __________ and ___________ Keep good records ____________ account balances regularly ____________ passwords Be aware of ______________ Guard against ____________ theft

10. Budgeting Activity Read through the directions on the handout and complete.