NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Unit 2 - Budgeting: Making the Most of Your Money

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Quote of the Day Blessed are those who are able to distinguish between money & wealth. -Unknown

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money The Five-Step Financial Planning Process 1-B

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money S-M-A-R-T GOAL Check S ________ M __________ _ T __________ R __________ A __________ _ 1-G

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Reasons for a Spending Plan  …Helps you determine _________ you are spending your money currently.  …Helps you decide where to _______your money in the future.  …You have an organized way to _______ for things that cost more.  …Puts you in control of your financial future, beginning __________. 321 Why Budget???

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money People Without a Budget…  …Are less likely to know what they have.  …Have no plan, often coming up short before their next paycheck or allowance.  …Are almost certain to have no plan to save for more expensive spending goals. 321

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Consists of _______ and __________ Is used as a __________ Should be ___________ Takes __________ and _________________ The Budget: (aka – Spending Plan)

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money How to Build a Budget 1.D ecide on a time frame for tracking expenses (week, two weeks, month). 2.L ist all money you have coming in (income). 3.M ake categories for all expenses. 4.S ubtract total expenses from income. 5.S tudy your budget and your financial plan to make sure it fits with your plans and goals

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Personal Plan for One Week

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Part 1 of the Equation: Income Work Paycheck AllowanceGifts

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Income Control Payroll Deductions Taxes

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Income Control Payroll Deductions

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Part 2 of the Equation: Expenses FixedVariablePeriodic

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money FIXED, VARIABLE, OR PERIODIC? ExpenseFixedVariablePeriodic Loan PaymentX Electric Bill X Twice-yearly Insurance Payment X ???

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money S A V E etting aside money for “big ticket items” voids borrowing, which costs you a lot! It’s a ery wise thing to do, because very time you pay yourself first, you are developing a saving habit that leaves you with more money to spend later on for things that are really important to you! PAY YOUR$ELF FIRST!

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Quote of the Day If you take money out of your left pocket and put it into your right pocket, you’re no richer. -Merton H. Miller, Economist

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money S-M-A-R-T GOAL Check S pecific M easurable T ime-Limited R ealistic A ttainable 1-G Set a Long-Term Goal Pg. 7

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Questions  Does it makes sense to create and live within a budget when you don’t have a lot of money?  What if you find that you are consistently spending more in one area than you had planned to?  What if you find that you can’t live within your budget? 2-B-3 321

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money Organize Your Financial Documents CCCChecking account statements SSSSavings and investment statements PPPPay stubs TTTTax documents IIIInsurance statements LLLLoan and credit card statements RRRReceipts and warranties for big ticket items

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money _______________________ __________________ ___________________________________ _____________________________________ _______________________________ Budgeting Methods

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money 2-A-1 NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money ?

NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money NEFE High School Financial Planning Program Unit Two – Budgeting: Making the Most of Your Money 2-A-2