1. Budgeting CALM 20

2. Budgeting Failing to financially plan? Planning to financially fail? What is the worst financial decision that you have made in your life? What important financial decisions and purchases will you have to make in the next five years? Are these wants or needs?

3. Budgeting What things do you need to consider in order to achieve these financial goals? What job will I have? How much can I afford to save or pay each month? Do I need a loan? Can or should I get a loan? Do I have a co-signer? Where will I live? Can I afford to go to school? Should I start and RRSP or RESP? How much support will be available from my parents/guardians?

4. Budgeting How can we be sure that our income will cover our expenses? (think/pair/share) Have a plan Keep track of expenses Create a budget Look closely at areas where cuts can be made in expenses Use a calendar to schedule bill payments/pay cheques Use a list for items to buy and stick to it! Shop when there are good sales Consider needs versus wants Reduce entertainment costs Pay in cash

5. Budgeting The most important thing that you can do to achieve your financial goals is to have a plan for your money...this is called a BUDGET Budget-A plan for spending and saving your money. It will help you make your money work for you.

6. Budgeting Tips Keep track of everything that you spend for three months to set a realistic budget Pay yourself first. Save 10% of your income. Housing should not exceed 35% of your net income (rent/mortgage 25% utilities 10%) Carefully plan your spending to live on what you earn (net income minus expenses/savings) Before spending, always ask yourself, is this a want or a need? Your values will influence your spending. Avoid going into debt.

7. Budgeting Rework a Budget Assignment – First take the information provided to you to set up Rachael’s budget. – Next rework Rachael’s budget to fit your personal lifestyle. Submit the completed budget’s by the end of class time.