1. MoneyCounts: A Financial Literacy Series
Budgeting
Penn State Financial Literacy & Wellness Center
011A Grange Building
University Park PA 16802
financialliteracy.psu.edu

2. Description

3. Learning Outcomes Understand the concept of budgeting
Identify the making of a budget
Create a personal budget
Forecast a future budget

4. What is Budgeting?

5. SMART Goals

6. How to set SMART Goals?
General goal
Be Free of Credit Card Debt

7. SMART goal steps: Identify the credit cards (specific)
Verify the amount owed (measurable)
Decide how much extra payment to send each month to meet your goal (attainable)
Calculate how much you can spare from your budget to pay off debt (realistic)
State when you want to reach your goal (timely)

8. SMART goal I have 2 credit cards I owe $2,400 on them combined.
Visa and a Mastercard.
I owe $2,400 on them combined.
I would need to pay $200 each month, which I can afford in my budget, to pay off the debt in one year time.
Once I am free of this debt, I will charge only things that I need and able to afford to pay back in full and on time by the due date of these credit cards.

9. Collecting information

10. Life cycle of receipts Paper receipts Electronic purchases
Purpose and life cycle
Electronic purchases
Debit transactions
Credit transactions

11. Organizing information

12. Tracking money coming in

13. Income versus loans/debt
Earning
Employment
Investment income
Borrowing
Loans
Credit cards

14. Financial assessment

15. Tracking money going out

16. What gives?

17. Identifying expenses

18. Spending leaks Identifying spending leaks Correcting spending leaks
Focus on goals
Set priorities

19. Balancing the budget

22. MoneyCounts: A Financial Literacy Series
Thank you!
Comments and Questions
Penn State Financial Literacy & Wellness Center
011A Grange Building
University Park PA 16802
financialliteracy.psu.edu