1. Planning for the Future:
How to Make a Budget

2. Financial Goals What are your financial goals?
What would you like to purchase in the short-term?
-laptop, cell phone, new shoes, …
Do you plan to pay for college?
Would you like to buy a car/house?
Do you want to have a certain amount of money at a certain age?

3. How to achieve financial goals.
Write them down.
Make a plan
Create a budget detailing spending & saving
SAVE, SAVE, SAVE!!!
****To create an accurate budget, you must track EXACTLY how much money comes in and goes out each month!

4. Cash Flow
Cash flow is the concept of money coming in (income and earnings) and money going out (expenses and spending). Just like ocean waves move in and out with the tide, so does our money—the difference is that we can control how our money flows by creating a good budget.

5. Expenditures What have you spent money on over the last two days?
Have you bought any food, clothing or electronics? Have you gone to the movies with a friend or bought any groceries or food?
There are two different types of expenses.
Fixed expenses are the same each month, such as a rent, insurance or car payment.
Variable expenses change in price and frequency each month, like food or gas.
Were your purchases this week fixed or variable?
How do your goals fit into these categories?
-Mortgage: Fixed or Variable?
-Vacation: Fixed or Variable?

6. Earnings What have your earned this month?
-Birthday money, job, chores, etc
Incomes must be tracked as closely as outgoing expenses.
Gross Income: Total earnings
Net Income: Actual pay after taxes (and other items) are deducted from your check. *Use Net Income to build your budget.

7. Let’s Practice Review the three scenarios using handouts or projector.
We can do this in small groups or as a class. I have the answer key.
Create your own budget using handout.
This budget should be placed in your Advisory folder upon completion.

8. Summary
Be certain to review your budget as often as needed. All budgets should be reviewed annually.
It is very important to create a budget to ensure you can meet your financial goals.
If you need help with budgeting, see the guidance office.
This lesson was adapted from PracticalMoneySkills.com. For more information about budgeting or personal finance, in general, visit their website.