Money Management for Self Advocates Workbook

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Money Management for Self Advocates Workbook

  1. 1. 1
  2. 2. Table of Contents Introduction Step 1: Think About What is Important for You Step 2: Separate Needs and Wants Step 3: List All Income Step 4: List All Expenses Step 5: Match Income and Expenses Step 6: Look for Ways to Save Money Step 7: Make a Budget Step 8: Keep Track of your Money Step 9: Review Your Budget Step 10: Take the “Yes” or “No” Quiz Resources for Financial Assistance References 3 4-5 6-7 8-9 10-11 12-13 14-15 16-17 18-19 20 21 22 23 2
  3. 3. Introduction Money can be fun and exciting – but it can also be hard and frustrating. The information and activities in this booklet will help you manage your money better. You will learn about income and expenses, how to create a budget and how to save for things that are important to you. You may want to make extra copies of the worksheets so you can do them again and make changes as needed. What is a Budget? A budget is a plan for saving and spending your money.It shows how much money you have coming in (income), how much is going out (expenses), and how you might save some money. Budgeting… • • • • shows you how much money you have helps you make decisions about the money you spend helps you save money and plan for the future simplifies and increases financial independence 3
  4. 4. Step 1: Think About What is Important for You A good place to start when making a budget is to think about what is important for you. What do you want to be able to do with your money? • What do you want to work toward? You may have several things to work toward. You maybe be able do some things in a few months, but others could take much longer. Some examples: • Having enough money to pay your own bills • Paying all of your bills on time • Saving money • Giving money to charity or other organizations • Taking a vacation • Getting a better apartment or buying a house • Buying a car • Buying personal items 4
  5. 5. Activity 1: List What is Important for You Write down specific things or activities you would like to use your money for. 5
  6. 6. Step 2: Separate Needs and Wants Needs are things we require or must have in order to live. • Examples of needs: Housing Medicine Food Water Clothing Wants are “extras” that make our lives more comfortable and enjoyable but are not necessary. • Examples of wants: Big screen TV Designer clothes Toys & video games Eating out Going to the movies 6
  7. 7. Activity 2: List Your Needs & Your Wants Write down things you need in the first column and things you want in the second column. What do I Need? What do I Want? 7
  8. 8. Step 3: List All Income Income is the money that comes into your household. This money could come from: • • • • • Paycheck Supplemental Security Income (SSI) Social Security Disability Insurance (SSDI) Money you take out of savings Money from family members and friends (if regular) EXAMPLE: Susie works part-time and earns $250 each month from her job. She also receives a Social Security check each month for $500. In addition, her parents give her $50 to help with groceries. When you add these up, her total income is $800 per month. Where my money comes from Amount per month Paycheck $250 Social Security Income $500 Financial help from family and friends $50 Total Income: (add up all the numbers) $800 8
  9. 9. Activity 3: List All Income Write down all of the money you earn or receive each month in the table below. Add up all the numbers to get your total income. Month ____________ Year __________ Where my money comes from Amount per month Paycheck Social Security Income Financial help from family and friends Other (specify) Other (specify) Other (specify) Total Income: (add up all the numbers) 9
  10. 10. Step 4: List All Expenses Expenses are the money you spend each month. Expenses could include: Rent Water and Sewer Electric/Natural Gas Cable, phone, internet Medicine Clothes/shoes Personal items Haircuts Car payments, insurance, gas Insurance and Repairs Credit Card Payments Food (including eating out) Pets Entertainment/fun EXAMPLE: Susie rents her own apartment so each month she must pay her rent and utilities. She also has other expenses like groceries, bus tickets and doing fun things like eating out and going to the movies. Her total expenses for the month are $950. Expenses Amount per month Rent/Mortgage $400 Electricity $100 Telephone/Internet $75 Cable/Television $75 Food (groceries) $150 Eating out $100 Entertainment/Recreation $25 Transportation – Bus tickets $25 Total Expenses $950 10
  11. 11. Activity 4: List Expenses Write down all of the money you spend each month in the table below. Some of these will be the same each month but others may change. Add up all the numbers to get yourtotal expenses. Expense Amount per Month Rent/Mortgage Water/Sewer Electricity & Gas Telephone/Internet Cable/Television Food (groceries) Eating out Personal items Entertainment/Recreation Transportation Other (specify) Other (specify) Other (specify) Other (specify) Total Expenses (add up all the numbers) 11
  12. 12. Step 5: Match Income and Expenses Now it is time to see how you well you are doing with your money. • Do you have money left over each month? • Are you spending more money than you earn each month? If you have money left over – great job! If you came up short, you can look for ways you could increase your income or decrease your expenses – or both. EXAMPLE: Susie has $800 coming in each month (income), but she spends $950 each month (expenses). The minus sign means she spent more money than she has, and she runs out of money at the end of each month! Cost saving ideas on the following pages can help Susie get back on track. Matching Income & Expenses Write down total monthly income (from Activity 3 on page 9) $800 Write down total monthly expenses (from Activity 4 on page 11) $950 Subtract expenses from income & write amount here -$150 12
  13. 13. Activity 5: Match Income and Expenses Write in your total monthly income and your total monthly expenses. Subtract your expenses from your income and write down the total in the last box. This number will be positive if you have money left over and will be negative if you are spending more than you earn each month. Matching Income & Expenses Write down total monthly income (from Activity 3 on page 7) Write down total monthly expenses (from Activity 4 on page 9) Subtract expenses from income & write amount here The next steps will help you see where you can save money, and then create a budget or plan for saving and spending money each month. 13
  14. 14. Step 6: Look for Ways to Save Money • • • • • • • • • • • • • Adjust thermostat when leaving the house or sleeping Make a shopping list and buy only the items on the list Shop at discount stores Buy generic items instead of name-brand Use coupons and look for sales Look for free community events (festivals, concerts, movies) Borrow free books and movies from the library Apply for a free government cell phone Buy only what you need instead of what you want Cook and eat most of your meals at home Avoid borrowing money from family and friends Use cash instead of credit cards Get other quotes for car insurance 14
  15. 15. Activity 6: List Ways You Might Be Able to Save Money Write down some specific ways you might be able to save money, for example using coupons for groceries or turning off the lights when you leave a room. 15
  16. 16. Step 7: Make a Budget We have reviewed your income, expenses and now we need to make a budget. A budget is a plan for saving and spending your money. The totals for income and expenses must match or your expenses must be less than your income. EXAMPLE: Susie spent too much money each month. She has found ways to save money and has made a budget on how she plans to spend her money. Notice that her total income and total expenses are both $800. Planned Income Paycheck $250 SSI $500 Family $50 TOTAL $800 Planned Expenses 1. Rent $400 2. Electricity $80 3. Phone/internet $50 4. Cable $50 5. Groceries $150 6. Bus tickets $25 7. Eating out $25 8. Savings $20 TOTAL $800 16
  17. 17. Activity 7: Make a Budget Start with writing down your income. Then write all of the things you plan to spend money on. The total of your expenses and your income should matchor your expenses must be less than your income. Planned Income 1. 2. 3. 4. TOTAL Planned Expenses 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TOTAL 17
  18. 18. Step 8: Keep Track of Your Money It is important to keep track of your money each month so you can budget correctly. You will need to write down: • • • • • Date Item Income Expenses Amount paid/received Use a plastic bag or envelope to keep all receipts. EXAMPLE: Susie has started to keep track of her income and expenses. Each time she spends or receives money she writes it down and puts the receipt in a plastic bag or envelope. Use a plus sign (+) for income and a minus sign (-) for expenses. Date Item Amount 7/1/2010 SSI check +$500 7/3/2010 Rent -$400 7/10/10 Fast food -$4.65 7/12/10 Movie ticket -$8.50 7/15/10 Paycheck +$125.00 7/15/10 Groceries -$32.47 18
  19. 19. Activity 8: Keep Track of Your Money Each time you spend or receive money write it down on this worksheet. Use a plus sign (+) for income and a minus sign (-) for expenses. Save all your receipts in a plastic bag. Month ____________ Year _________ Date Item Amount 19
  20. 20. Step 9: Review Your Budget Each week, or month, review all the worksheets to see what is working and what is not. You may want to ask a trusted family member, friend, or staff person to help you with this. • • • • • Did you remember to write down the money you are spending? Are you saving all your receipts? Are you following your budget? Do you need to make changes? Are you getting closer to your budget goals? REMEMBER… • Don’t be afraid to ask for help if you spend too much. • Budgeting is an on-going process. You move from one step to the next over and over again. • Don’t give up on your budget. If you make a mistake, try again next time! Make a budget ( page 15) Start Again Write down all the money you receive on the tracking form ( page 17) Make any needed changes to your budget on page 15 Write down all the money you spend on the tracking form (page 17) & save your receipts Compare your tracking sheet with your budget on page 15 20
  21. 21. Step 10: Take the “Yes” or “No” Quiz Questions Yes No 1. Do you know what the word ‘budget’ means? 2. Do you know where your money comes from? 3. Do you know how to create a budget? 4. Do you know what you have spent your money on by the end of the month? 5. Do you know who to ask for help with your budget? 21
  22. 22. Resources for Financial Assistance • Department of Social Services • Food stamps; Women, Infants, and Children (WIC); Low-income Energy Assistance Program; Crisis Intervention Program • Community resources like food banks, community action agencies and faith-based programs • The United Way (for local resource information) • Utility companies for possible payment plans • Prescription assistance programs • VITA tax preparation sites for free help filing taxes and collecting tax refunds Make sure that you receive the most for your money by checking your credit report to make sure that it does not have wrong information about your credit history. To order a free credit report: Call: (877) 322-8228 Log on to: www.annualcreditreport.com Write: Annual Credit Report Request Service PO Box 105281 Atlanta, GA 30348-5281 22
  23. 23. References National Endowment for Financial Education &The Arc of The United States (2001). Make the Most of Your Money! Denver, CO: National Endowment for Financial Education. Stouffer, Tere (2008). Everything Personal Finance in your 20s & 30s (2nd ed.). Avon, MA: Adams Media. Stouffer, Tere (2008). The Everything Budgeting Book (2nd ed.). Avon, MA: Adams Media. Additional Activity Pages Have Been Included as the Last Pages of Your Booklet 23
  24. 24. Activity 1: List What is Important for You Write down specific things or activities you would like to use your money for. 24
  25. 25. Activity 2: List Your Needs & Your Wants Write down things you need in the first column and things you want in the second column. What do I Need? What do I Want? 25
  26. 26. Activity 3: List All Income Write down all of the money you earn or receive each month in the table below. Add up all the numbers to get your total income. Month ____________ Year __________ Where my money comes from Amount per month Paycheck Social Security Income Financial help from family and friends Other (specify) Other (specify) Other (specify) Total Income: (add up all the numbers) 26
  27. 27. Activity 4: List Expenses Write down all of the money you spend each month in the table below. Some of these will be the same each month but others may change. Add up all the numbers to get your total expenses. Expense Amount per Month Rent/Mortgage Water/Sewer Electricity & Gas Telephone/Internet Cable/Television Food (groceries) Eating out Personal items Entertainment/Recreation Transportation Other (specify) Other (specify) Other (specify) Other (specify) Total Expenses (add up all the numbers) 27
  28. 28. Activity 5: Match Income and Expenses Write in your total monthly income and your total monthly expenses. Subtract your expenses from your income and write down the total in the last box. This number will be positive if you have money left over and will be negative if you are spending more than you earn each month. Matching Income & Expenses Write down total monthly income (from Activity 3 on page 7) Write down total monthly expenses (from Activity 4 on page 9) Subtract expenses from income & write amount here The next steps will help you see where you can save money, and then create a budget or plan for saving and spending money each month. 28
  29. 29. Activity 6: List Ways You Might Be Able to Save Money Write down some specific ways you might be able to save money, for example using coupons for groceries or turning off the lights when you leave a room. 29
  30. 30. Activity 7: Make a Budget Start with writing down your income. Then write all of the things you plan to spend money on. The total of your expenses and your income should matchor your expenses must be less than your income. Planned Income 1. 2. 3. 4. TOTAL Planned Expenses 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. TOTAL 30
  31. 31. Activity 8: Keep Track of Your Money Each time you spend or receive money write it down on this worksheet. Use a plus sign (+) for income and a minus sign (-) for expenses. Save all your receipts in a plastic bag. Month ____________ Year _________ Date Item Amount 31

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