Objective: Students will learn how to prepare a budget and identify the difference between financial planning and personal budget.

Slides:

Advertisements

Similar presentations

Spending Plans. What is a spending plan? A tool used to record and track projected and actual income and expenses over a period of time. Also called a.

Advertisements

Money Management Key Terms.

Mrs. Wilson Business Essentials. This lesson provides information about money management basics and the reports used to measure financial progress.

Money Management Strategies

WORKABILITY III PRESENTS EFFECTIVE BUDGETING SKILLS FOR COLLEGE & BEYOND ONLINE WORKSHOP SERIES.

16 Money Management and Financial Planning

Essential Standard 4.00 Understanding the role of finance in business. 1.

Why is the time value of money an important concept in financial planning?

Money Management 28.2.

Looking at Finances Budgeting. Financial Planning Benefits of planning: 1. Helps you live within your incomeHelps you live within your income 2. Identifies.

6.01K HOUSEHOLD BUDGETING and the FOOD SPENDING PLAN

Financial Planning. More than budgeting More than investing Financial planning is a thinking process that helps achieve goals. A blueprint or plan for.

Creating a budget is important to ensure your financial security, monitor your income and expenses, and a way to help you save money. In order for your.

Budgets A simulation of the realities of balancing a budget.

Principles of Business, Marketing, and Finance Financial Planning Copyright © Texas Education, All rights reserved.

Chapter 36 financing the business Section 36.1 Financial Analysis

Money Matters1. 2 Introductions Instructor and student introductions Module overview.

Unit 4 Creating a Budget. Objective(s) What is a budget? Activity – Pair up with someone in the room and sit with them and prepare to begin the budgeting.

3 rd 9 Weeks Benchmark Review Career Preparedness.

MANAGING YOUR PERSONAL FINANCES- Unit 7 – Creating a Budget.

Section 1Organizing Financial Records Budgeting How do your spending options fit: Day-to-day financial activities necessary to get the most from one’s.

CHAPTER THREE: MONEY MANAGEMENT & STRATEGY UNIT ONE PLANNING PERSONAL FINANCES “I didn't end up going bankrupt... I made some great investments and I held.

WELCOME! to Collin College SMART Money Presentation Today’s Presenters: Mark Clark, Collin College Professor of Business & Economics Doug Willis, Associate.

Budgeting basics. Gross income The amount of money BEFORE TAXES!!!!

Do Now 1)What is a budget? 2) What is the purpose of a budget?

Money Management Key Terms. Money Management Paycheck Key Terms.

Road to Financial Maturity Saving & Budgeting. Why Money Skills Are Important  Create Independence  Set and reach goals  Enjoy living responsibly within.

Goals and Budgeting Ms. Rendek. The importance of setting goals and maintaining them...no matter how hard it may be.

PERSONAL INVESTMENTS HELPING YOUR CLIENTS REACH THEIR GOALS.

Planning a Budget Chapter 28.

Personal Finance Bishop Kearney High School Dr. Steven M. Hays.

Budgeting Part II. What We’ve Learned Goals – Short-term goals – Long-term goals – Intermediate goals Wants vs. Needs.

Lesson 4-2 Basics of Budgeting LEARNING GOALS: -IDENTIFY THE PURPOSE OF A PERSONAL BUDGET -PREPARE A PERSONAL BUDGET -DESCRIBE RECORDKEEPING METHODS USED.

My Budget Shaphan Thomas. My First Budget Salary$2,708 FICA Medicare Federal Income State Tax-97 Net Income$2,235 Housing-975 Food-600.

Budget Project Expenses House/Rent 28% Utilities 5% Food 18% Car Payment 12% Taxes 16% Savings 5% Entertainment 5% Other 11%

2.1.3.G1 © Take Charge Today – August 2013 – Financial Decisions – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family.

Budgets Introduction © Donal Enright 2008 in association with Teachnet.

Chapter 3 Section 3.1 and 3.2.  Money Management  Spend your money on clothes or save it?  Shopping around for better deal on mp3 player?

financial resources wants needs cash inflows cash outflows expenses, or items for which you must spend money money or other items of value that are used.

2.2.5.G1 © Take Charge Today – August 2013 – Spending Plans – Slide 1 Funded by a grant from Take Charge America, Inc. to the Norton School of Family.

Topics Headline 5 Tips to break spending leaks om/od/savingmoney/qt/sp endingleaks.htm Main ArticleBig Picture Multimedia.

Crown Financial Ministries Crown Money Map – your visual guide to True Financial Freedom We are going to talk about a Spending Plan We are going to look.

1 Income Statement. 1.Buying a horse (for me!) 2.How much did I pay? 3.What do I have invested in it? 4.What to sell it for? Simple Transaction.

Personal Budget 101 Economics. Budgeting and Goals What are your financial goals? –Would you like to buy a laptop or car? –Do you plan to play for a college.

Five steps to increase your bottom line Roxie Rodgers Dinstel Tanana District Extension Home Economist.

Topics Headline 5 Tips to break spending leaks om/od/savingmoney/qt/sp endingleaks.htm Main ArticleBig Picture Multimedia.

money you have in a bank either in checking (where you can use the money with an ATM card or by writing a check) or savings (where you earn interest)

B UDGETING 101. W HAT ARE YOUR FINANCIAL GOALS ? What kinds of items would you like to purchase? Do you plan to pay for a college education? Do you want.

Budgeting Techniques Key Terms --Budget --Fixed Expenses --Allowance --Budget Variance.

Objectives:  Describe needs and wants  Apply a decision making process to make personal financial choices  Understand terms on personal cash flow statements.

USING THE BANK INDEPENDENT LIVING NOVEMBER 4, 2015.

Section 3.3.  Step 1: Set Your Financial Goals  Step 2: Estimate Your Income.

Preparing a Budget. Budgeting Managing one’s income and expenses by creating a plan  Companies, Governments, Families, You Covers a specific time  Companies.

Spending Plans. What is a spending plan? A tool used to record and track projected and actual income and expenses over a period of time. Also called a.

DAVE RAMSEY THE SEVEN BABY STEPS TO FINANCIAL PEACE.

Bell Ringer 1/20/16 Make a list of some items you would like to purchase in the next few years Take out homework. We need to go over it.

Chapter 4 Financial Decisions and Planning. Slide 2 What Are Needs and Wants? 4-1 Resources and Choices Needs are things you must have. o Examples: food,

Standard 1 VOCABULARY.  Career – a purposeful course of action or purpose in life that generally provides income  Earned Income –money received for.

2-1. McGraw-Hill/Irwin Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 2 Money Management Skills.

Spending Plans Advanced Level G1 © Take Charge Today – August 2013 – Spending Plans – Slide 2 Funded by a grant from Take Charge America, Inc.

Budgeting and Record Keeping. Financial Planning ► Financial Plan- An _____ program for spending, saving, and investing the money you earn.

Managing Money. What do you use money for? Money is for the things that you need Money is for the things that you want Money is for unplanned expenses.

FACS 56 life management money management— spending record & savings.

Topic 4 – Allocating Your Money

What are the benefits of having a budget?

Budgeting Economics Ms. McRoy.

Chapter 2 Managing Spending

Setting Financial Goals

Chapter 4 Financial Decisions and Planning

Presentation transcript:

Objective: Students will learn how to prepare a budget and identify the difference between financial planning and personal budget.

  We’ve discussed financial planning, who can tell me what is financial planning? Financial Planning

  While both financial planning and budgeting are important tools in creating a stable financial situation each function provides specific benefits.  Budgeting makes it possible to handle day-today costs and expenses in a manner that keeps you moving forward.  Financial planning makes it possible to have a destination or goal for that movement, which in turn enhances the work of the budget. Financial Planning & Budgeting

  The financial plan is the identification of the goal, while budgeting is the tool to make the realization of that goal possible. Financial Planning versus Budgeting

  If the goal is to set aside funds for a child’s college education:  Financial planning will go through the process of determining how much money must be set aside in order to fund four years at the institution of choice.  Once the goal is clear, it is possible to look at the available revenue stream and determine how much money must be set aside each pay period in order to save the desired amount of money. That amount is then included in the budget and set aside each pay period so the funds will be available for the child’s college career. For Example

 1.Gather every financial statement you can. 2.Record all of your sources of income. 3.Create a list of monthly expenses. 4.Break expenses into two categories: fixed and variable. 5.Total your monthly income and monthly expenses. 6.Make adjustments to expenses. 7.Review you budget monthly. How to Create a Budget

  When creating a budget it’s best to K.I.S.S.  What you should remember:  Expenses > Income = Bad  Expenses < Income = Good Formula

 Income: Net Pay $3,000 a mo. Expenses: Home$1,500 a mo. Car$350 a mo. Food$400 a mo. Savings$750 a mo. Total Expenses$3,000 a mo. Sample Budget

  What was our objective for today?  Tomorrow you will have an in class packet to complete about personal budgeting. Conclusion