1. Planning a budget

2. On the back of your guided notes:
What is a personal budget?
Why should you have one?
What is included on a personal budget?

3. Lifestyle – Pre-budgeting
Lifestyle is a way of living that reflects that person’s attitudes and values
Where will you live? Rent or Own
What do you prefer in clothing? Latest styles, sales, or resale
What are your tastes in food? Eat out, microwave meals or made from scratch
What transportation will you use? Own car, public transportation or biking

4. What are your values? Savings Food rank them 1-10 Clothes
Sports/Recreation
Church/giving
Car
School expenses
Hobbies
Social Activities
Personal appearance

5. Importance of Budgeting
A budget is a plan for using your money in a way that meets your wants and needs
Helps to control spending and accomplish goals
Not designed to deprive but assist in reaching personal goals

6. What Makes a Good Personal Budget?
Ability to cover basic expenses
Cash for the unexpected
Savings for the future
**Create a budget you can live with!!**

7. Steps in Planning a Budget
5 Steps to planning a budget
Set your goals
Estimate your income
Estimate your expenses
Plan for savings
Balance and adjust your budget

8. Set your Goals What do you want to accomplish in the next month?
What is important to you?
Are your goals practical?
It is useless to set a goal to buy a computer in one year if your income per year is less than the computer costs.

9. Estimate your Income
Gross Pay – the total amount of money you earned for a specific time
Deductions – are certain amounts that are subtracted from your pay before you receive your paycheck
Net Pay = Gross pay minus deductions sometimes called take home pay

10. Estimate your Expenses
Fixed—paid regularly
Rent, insurance, car payments
Variable (Flexible)—amount varies
Food, clothing, gas for car
**DISPOSABLE INCOME
- FIXED EXPENSES –
- VARIABLE EXPENSES
=DISCRETIONARY INCOME

11. Plan for Savings Help to protect against unexpected expenses
Helps with future wants
Helps with expenses that are higher than you budgeted for
PYF (Pay Yourself First)—10% right when you get your check

12. Balance and adjust budget
Check to be sure that actual expenses are actually meeting costs you budgeted for
Check weekly, monthly and yearly
Either cut expenses or increase income

13. Personal Budget INCOME TOTALS Work Allowances Lunch Money TOTAL INCOME
EXPENSES
Daily Lunches
Supplies
Snacks
Entertainment
SAVINGS
Deposits
TOTAL EXP & SAVINGS

14. Ways to Stick to a Budget
Shop with budget in mind
Plan for large purchases so you know you can afford them
Negotiate when possible
Avoid impulse buying
Watch for sales
Track purchases

15. Minimum Wage $7.25/hour 40 hours a week, 52 weeks
Yearly income BEFORE taxes = $15,080
Taxes = 23% of income
How much will you make each month?
Approximately $967

16. Other job $40,000/year before taxes Taxes = 23% of income
How much will you make each month?
Approximately $2567