Personal Finance Section Creating a Budget
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Personal Finance Section Creating a Budget






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Personal Finance Section Creating a Budget Presentation Transcript

  • 1. Personal Finance Section Creating a Budget
  • 2. Personal Finance Section
    • Creating a Budget:
      • A drip from your bathtub faucet can send thousands of gallons of water down the drain each year. Your money can dribble away as well.
  • 3. Personal Finance Section
    • A $ 14.00 pizza, an $ 80.00 pair of sun glasses, a $ 16 movie ticket - - they don’t seem like much at the time.
    • BUT a lifetime pattern of careless spending can be painful, even ruinous.
    • Money problems can cause stress, wreck personal relationships, and trap people in jobs they don’t like just so they can pay their bills.
  • 4. Personal Finance Section
    • There is a better way
  • 5. Personal Finance Section
    • Calculate Income vs. Spending
      • Budgeting begins simply with writing how much money you receive and how much you spend.
  • 6. Personal Finance Section
    • Four Steps to Successful Budgeting:
      • 1. Make a list of all your earnings. Then calculate your total monthly income.
      • 2. For one month, keep a record of everything you spend money on, from car payments to candy bars.
  • 7. Personal Finance Section
    • Four Steps to Successful Budgeting:
    • 3. At the end of the month, organize the records of your purchases into categories such as food, clothing, entertainment, car payments, and etc.
    • 4. On a sheet of paper or computer spreadsheet, make a list. Then calculate your money.
  • 8. Personal Finance Section
    • My Spending and Saving Plan
    • Monthly Expenditure:
    • Car Payment $ 120.00 Insurance $ 42.00
    • Gasoline $ 27.00 Maintenance $ 30.00
    • Food: Lunches $ 58.00 Snacks $ 34.00
    • Movies: Theater $ 28.00 Rentals $ 4.00
    • Clothes: Shoes $ 16.00 Other clothes $ 39.00
    • Savings for school trip $ 50.00
    • Magazine subscription $ 5.00
    • CDs $ 24.00 Gifts $ 0
    • Savings $ 0 Emergencies $ 0
            • Total Budget $ 477.00
  • 9. Personal Finance Section
    • This record can reveal how little money is left over at the end of the month.
    • Experts recommend that we put aside 10% of each months money and put it into savings.
  • 10. Personal Finance Section
    • Living within your Budget
      • Look at your budget and find ways to cut your spending.
      • Previous example – could cut the shoes down to $ 7.00 and other clothes down to say $ 25.00. Cut out the magazine subscription $ 0.00. Take a lunch to school instead of buying the school lunch.
  • 11. Personal Finance Section
    • Adjust your cuts into the list and now you have a new budget. Try to live by that budget as much as possible.
    • Your budget is a plan for saving and spending.
    • If you have a hard time living within your budget seek help from others – parents, friends (maybe not), or financial professionals – to help you live within your budget.
  • 12. Personal Finance Section
    • The Number ONE Rule to live by when making a budget is to always pay your self first.
    • If you want to save 10% of your money each month to invest – take out the 10% first and then budget the rest of the money. This is the easiest way to build wealth and have an easier time when you get older.
  • 13. Personal Finance Section
    • Review:
      • 1. Why is it important to create a budget?
        • What are other ways to save money in your budget?