Budgeting Your Money

Monday 3 rd Period Objective: Be able to explain what a budget is and how using one can help you. EQ: What is a budget? How do I start using one? How can it help me?

What is a budget? NOUN an estimate of income and expenditure for a set period of time: “keep within the household budget” synonyms: financial plan · forecast · accounts · statement Budgets help people keep track of the money they have coming in and how they spend that money over time.

Why make a budget? A budget will help you manage your money Help you avoid debt Helps you achieve your life goals

There are 2 Main Parts to a Budget: Income and expenses/expenditures What is income? Create a list for the class of different types of income that you have as a class Look at the list and group them into categories What are expenses or expenditures? Now list all the different things that you spend money on Look at the list and group them into categories

5 th period Review the categories you created in 3 rd period for income and expenses. Refine those list As a class reflect over what will make students budgets look different and why you should do a budget Age Living arrangements Jobs Children Any others? Will your budgets change in your lifetime? Why should you start getting into the habit now instead of when you are living on your own?

Tuesday 3 rd Period For the rest of the week you are going to keep track of all the money you earn and the money you spend. On a piece of paper create a spread sheet, like the one on the next slide, so that you have a place to record your spending and your earnings.

Personal Expenditure sheet Name: ___Sassy____________________________ Period _0__ Week __1__ DateWhere to or fromIncomeSavings You need to make categories at the top that are relevant to you: you might have eating out, entertainment, auto, cell phone, school,... You make your list as you need to. Look at your shoulder partner to see if they have something you forgot. The next slide will show you what yours should look like when you start filling in the information today and for the rest of the week- keep it going until next Tuesday.

Personal Expenditure sheet Name: ___Sassy____________________________ Period _0__ Week __1__ I have _$___________right now DateWhere to or fromIncomeSavingsdine outHome foodAuto_entertainbeauty_________________ 9/16 paycheck /16TRANSFER TO SAVINGS /16 Jumbo burrito breakfast /16Wing Stop /16Dinner at home /17Breakfast at home /17Car payment /17 Rosa’s /17Mom handed me /18 dinner at home /18Movie at red box /18CVS hair, nails /19 concert /19fuel /19Breakfast /19lunch /19 dinner 6.25 totals THIS IS HOW TO RECORD- YOUR CATEGORIES WILL BE DIFFERENT KEY PARTS: THE CATEGORIES AND THE TOTALS. YOU WANT TO SEE HOW MUCH YOU SPEND IN EACH CATEGORY SO YOU KNOW HOW MUCH TO BUDGET. YOU HAVE TO TOTAL IT TO KNOW HOW MUCH IS WAS

FOR THE NEXT WEEK WE WANT YOU TO: Write down every time you spend money. Yes, even that bottle of water or candy at the store. If you hand a friend or family money. You buy your gal’s lunch. If you spend money in any form record it. Put the date, where and then the amount under the category. AND ALSO: Write down any money you receive under income - found a $1.00 record it, mom hands you a credit card to buy clothes or gas, record it, you get a pay check, allowance, money from a friend, however you get money this week record it. Put the date, where from and then put the amount under the category “income” Be honest with yourself. START BY: Recording what money you have now in your bank accounts, sock drawer, wallet, purse, floorboard of the car. You may need to add it all up tonight and put it on the paper at the top.

5 th period In small groups brainstorm how you can keep track of the money you spend each day Create a poster from all the brainstorming that you can hang up to remind you. Some ways that you might have thought of include: keeping receipts, writing it down, checking with the bank, remember the bank only knows what has processed.

Practice recording your expenses In groups make a spread sheet for the group and record what each of you spent money on. Income that you had. Now discuss where you spent your money- are you okay with the expenses for today? If not why?

Wednesday 3 rd period Objective: be able to list applications that you can use to help track your spending. EQ: Can knowing where you spend your money make you richer? Is that worth developing a habit of tracking your spending?

Apps that can help Mint Level Money Lover There are many different apps that you can download to your smartphone or tablet that will help you track your money. Some of the apps actually link to your financial accounts. You have to allow them passwords and access. Others only have the information that you input. You have to decide you would want to work with an app or not. Below are a few samples of different ones. Do a little research on your own and see if one is a good fit for you

Wednesday 5 th period What if you are not comfortable having it on your phone and having your bank account linked into? Develop a routine for handling receipts. Have a specific place in your wallet or purse. Then have a specific place to take them out and what you will do with them at home. Are you going to record them onto paper or into an excel sheet on your computer? Either way you will be informed of where your money is going if you take a few minutes each day to record your spending. Divide up into groups based on how you want to track your money and discuss the pros and cons of that method. Each group share out your thoughts. Objective: be able to generate ideas for how to track your spending other than electronic

Thursday 3 rd period Now that you have started tracking your money we can begin to look at how you will set up a budget. Discuss where you are in the budget cycle. Do you have an income yet? Do you have bills yet? If not then use this to help you to develop the habit of saving (10% is what is recommended) and knowing where your money is going.

Thursday 5 th period- Objective be able to distinguish between fixed and variable expenses A budget will consist of fixed expenses- those expenses that once you have obligated yourself to them they are not easily removed. (rent, mortgage, car payment, furniture payment, student loans, insurance, utilities) Be very careful about obligating yourself to high fixed expenses. You can do with less and you will be happier if you are not always broke. Variable expenses are ones that you have more power to change the amount on. (groceries, haircuts, nails, fuel, clothing, entertainment, travel, gifts) Make a list of your wants and needs- then mark beside them if they are fixed or variable How would that list look if you were living on your own? Visit with your shoulder partner how you can avoid having your expenses equal more than your income.

Friday 3 rd period Objective: Be able to list Dave Ramsey’s 7 Baby Steps. EQ: How would doing these make your budget look different?

Dave Ramsey’s 7 Baby Steps: Baby Step 1: Create a $1,000 Emergency Fund Baby Step 2: Pay Down All Debt With the Debt Snowball Baby Step 3: Save 3 to 6 Months of Expenses in Savings Baby Step 4: Invest 15% of Income into Roth IRAs or pre-tax retirement Baby Step 5: Fund College Savings for Children Baby Step 6: Pay Off Your House Early Baby Step 7: Build Wealth and Give

5 th period Objective: You will be able to critic Dave’s Baby Steps. Take a poll in class to see how many would agree with each step. Baby Step 1: Create a $1,000 Emergency Fund Baby Step 2: Pay Down All Debt With the Debt Snowball Baby Step 3: Save 3 to 6 Months of Expenses in Savings Baby Step 4: Invest 15% of Income into Roth IRAs or pre-tax retirement Baby Step 5: Fund College Savings for Children Baby Step 6: Pay Off Your House Early Baby Step 7: Build Wealth and Give If you disagree, what would you suggest to do? Why? If you agree with baby step 1 list ways that you could get $ saved up? Can you do that?