1. Budgeting
Houston Community College Financial Literacy and Capabilities Module pt. 4

2. Assets vs. Liabilities Asset? Calculate your net worth
Assets- liabilities= net worth (wealth)
Assets are possessions that have value, generally increase in value, or provide a return. Wealth building assets earn money or increase in value. Accumulating assets can help build wealth.
Liabilities are money you owe.
Asset?

3. http://playspent.org/ Why Budget?
Budgeting allows you to save money, plan for the future, and understand where your money is going.
Use the simulation below to see how living without a budget can impact your life.

4. Budgets help you save money and understand where your money is going.
Creating a Budget?
Budgets help you save money and understand where your money is going.
1. Determine your monthly income.
2. Determine how much you spend monthly on must haves, wants, and savings/debts.
3. Reduce your spending of much haves to no more than 50% of your income. Reduce your wants to no more than 30% of your income. Reduce your debts to no more than 20% of your income and save or invest the rest!
View pg

5. Budget Tips Be disciplined.
Use the 72-hour wait rule to make purchases.
Watch the small purchases you make often.
Avoid payday loans!
Don’t take cash advances on your credit cards!
Buy used products.
If you can’t keep up with your bills, contact your lender.

6. Budget & Savings Activity
After creating your budget
Stick to your budget over the time
specified by your instructor.
Report your savings at the end of the
specified time period.

7. Financial Literacy & Capabilities Survey
After completing all of the content in the financial literacy and capabilities unit, please take the survey at the link below.