1. SS.8.FL.2.5 Discuss the fact that people may revise their budget based on unplanned expenses and changes in income.

2. Essential Questions: Why is it important to have a budget? What are the necessary steps to create a budget? What unexpected events might create a need to revise your budget? Why is it important to have a budget? What are the necessary steps to create a budget? What unexpected events might create a need to revise your budget?

3. ■ To determine how much money you have to spend ■ To decide how you want to spend your money ■ To determine how to spend money in the future ■ To learn to live on less than available income ■ To stay out of financial trouble www.practicalmoneyskills.com the art of budgeting

4. phase 1: Assess your personal and financial situation (needs, values, life situation). phase 2: Set personal and financial goals. phase 3: Create a budget for fixed and variable expenses based on projected income. phase 4: Monitor current spending (saving, investing) patterns. phase 5: Compare your budget to what you have actually spent. phase 6: Review financial progress and revise budgeted amounts. www.practicalmoneyskills.com the art of budgeting

5. be realistic A student working part-time is not likely to be able to afford a new car every couple of years. be specific “I want to save $5,000 for a down payment to buy a house.” have a timeframe “I want to pay off my credit card within the next 18 months.” state the action to be taken “I want to start an automatic deposit savings account with monthly withdrawals from my checking account.” well-written personal and financial goals SHOULD: www.practicalmoneyskills.com the art of budgeting

6. S : Specific- precise or exact M Measurable-something that can be measured A R T Attainable- capable of being accomplished Realistic- something that is practical Timely- goal that can be reached within a time frame

7. INCOMEEXPENSES MONTHLY SAVINGS January Allowance Income Other February Allowance Income Other March Allowance Income Other April Allowance Income Other May Allowance Income Other