1. Completing Your Budget
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2. Lesson Outcomes
Students should be able to identify expenses which are included in a budget.
Students will be able to prepare a simple household budget.
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3. Lesson Tasks Review the breakdown of budget items
Complete a final monthly budget
Reflect of how to use a budget in the future
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4. What does a budget include?

5. Budgets
Budgets will include the categories of food, utilities, housing, transportation, medical/health, insurance, saving, debt, giving/charity, personal shopping, and entertainment.
Which category/categories do you think will be most difficult for you to keep your spending within your budget?
Which will be the easiest? Why?
How might this change in the future?
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6. Budget Breakdown
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7. Description of Budget Items
Medical/Health 5-10%: This includes co-pays, prescriptions, gym memberships, and other medical or health related costs.
Insurance 10-25%: (Includes health insurance)
Savings 10%: This is rather straightforward, but you may want to increase or decrease this based on other categories, or earmark your savings for a particular purpose.
Debt 5-10%: Hopefully you won’t have any debt to pay back. If you don’t, you can shift this 5-10% to another area or areas such as savings, housing, or transportation as needed.
Giving/Charity 10%: This may seem unnecessary to you now, but you may find that this aligns well to your personal vision or mission.
Personal Shopping 5-10%: Consider what you currently spend money on. How much do you spend a week? Now consider owning your own home, having children, caring for a pet, or renting an apartment. What additional expenses might you have?
Entertainment 5%: Think about how you might spend your time. What will you plan to do for fun at 18, 21, 30, 45, 60s and beyond?
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8. Changing Budgets
Your budget can change from month to month – it all depends on your monthly expenses At the end of the month, if you budgeted correctly, your budget should equal 0. This means you have allocated all of your income.
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9. Juanita – earns $35,000 per year
Who is Wealthier?
Juanita – earns $35,000 per year
Assets
Home
$60,000
Retirement
$24,000
Automobile
$8,000
Total Assets
$92,000
Liabilities
College loan
$6,000
Mortgage
$35,000
Total Liabilities
$41,000
Net Worth
$51,000
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10. Who is Wealthier? Alexis – earns $100,000 per year Assets Net Worth
Home
$75,000
Retirement
$35,000
Automobile
$8,000
Total Assets
$118,000
Liabilities
College loan
$10,000
Automobile loan
$4,000
Credit card debt
$20,000
Mortgage
$65,000
Total Liabilities
$99,000
Net Worth
$19,000
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11. Juanita – earns $35,000 per year
Who is Wealthier?
Juanita – earns $35,000 per year
Alexis – earns $100,000 per year
Assets
Home
$60,000
Retirement
$24,000
Automobile
$8,000
Total Assets
$92,000
Liabilities
College loan
$6,000
Mortgage
$35,000
Total Liabilities
$41,000
Net Worth
$51,000
Assets
Home
$75,000
Retirement
$35,000
Automobile
$8,000
Total Assets
$118,000
Liabilities
College loan
$10,000
Automobile loan
$4,000
Credit card debt
$20,000
Mortgage
$65,000
Total Liabilities
$99,000
Net Worth
$19,000
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12. Final Monthly Budget
Calculate your spending allowance for each category based on future salary on the Final Monthly Budget. Investigate areas of your budget so that you better understand what the categories will mean for you.
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13. Self-sufficiency
In order to maintain self-sufficiency and stay within your budget, the average family may need to have the following annual incomes.
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14. Review
What should be the ending balance of your monthly budget? What can cause a change in your budget? What is the most important part of the budgeting process?
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15. Review
What should be the ending balance of your monthly budget? $ 0.00 What can cause a change in your budget? Changing monthly expenses What is the most important part of the budgeting process? Knowing where your money is going
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16. Complete the Lesson… Complete the Managing My Cash Flow Reflection
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