Creating a Family/ Personal Budget: Dollars & Sense! Presentation

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Creating a Family/ Personal Budget: Dollars & Sense! Presentation

  1. 1. Dollars & Sense!
  2. 2.  Students will be able to define the following key terms: budget, expenses, income, wants, needs, fixed income, unexpected expense, and debt Students will be able to plan a working budget Receive knowledge to develop a budget to use in their family/personal life Create a budget using spreadsheets Distinguish between wants and needs Categorize wants into a list Categorize needs into a list Because of this exercise, students will understand their income, expenses, and plan a realistic budget.
  3. 3. This lesson will include real world reading, math, andtechnology skills used in monthly financial planning.Lesson Focus: Practical understanding of budgetingand differentiate between the “I want it” and “I needit” columns. Lesson Goal: To spend less than what weearn, make better financial decisions, and depositany money left into a savings account.
  4. 4. BudgetExpensesFixed IncomeIncomeNeedsWantsDebtUnexpected Expenses(Curveballs)
  5. 5. A Budget is a plan that a family or person creates tospend and save money.A plan that sets a sum of money aside that isneeded for a given purpose (Dictionary.com, 2012). It helps a person learn how much he or she isspending and how much he or she issaving.(Bernstein, 36).
  6. 6. Cost or charge, cause or occasion of spending(Dictionary.com, 2012).Expenses are the bills and other things that youspend money on.For example, the electric bill is an expenseIn addition, Expenses can include going out toeat
  7. 7.  A payment received for goods or services or other sources such as rent or investments ( Dictionary.com, 2012). Your income is the money you earn or receive each week, bi-weekly, monthly. It includes interest from a checking or savings account Including interest from a second job, hobbies( items sold from what you made as a hobby, investments, and governmental supplement income
  8. 8.  A uniform or set rate of income per amount of time (Dictionary.com, 2012). Fixed income is an when a person has a set amount that is earned or received weekly, monthly, bi-weekly or monthly. For example, a person who receives social security is on a fixed income
  9. 9.  Unexpected expenses are considered curveballs because they are expenses you do not expect to arise. For example, your daughter is playing basketball and she injuries her knee during a game. The doctor bill and medication is an unexpected expense It is important to save money ( a rainy day fund) for unexpected expenses
  10. 10. Of necessity, necessarily, a must(Dictionary.com, 2012).Needs are necessities, they are the expenses youneed to survive:For example…Clothing, Food, & Laundry Utilities ( gas, electric, water, food, & atelephone)Insurance: Car, home, renter’s insuranceTransportationA home
  11. 11. To wish, crave, demand, or desire. An impulse (Dictionary.com, 2012).Wants are things that you do not need tosurvive:For example, movie rentalsMovie ticketsHobby suppliesGoing out to eat at a restaurantCable TV or Satellite TV
  12. 12.  What is debt? Something that is owned or one bound to pay to another (Dictionary.com, 2012). Debt is when a person owes money For example a mortgage, car payment, or credit cards
  13. 13. There are 7 steps in creating a monthly budget1. List all of your monthly needs2. List of some of your wants3. Write down your monthly income or fixed income4. Add your total income if you have more than 1 income.5. Add your needs and your wants together to view the Total Expenses6. Subtract the Total Expenses from your Total Income7. The money left is your monthly savings ( place it in your savings account!)8. Adapte
  14. 14.  Let’s Practice Steps 1-3!!! Assignment 2 Class Guided Practice Budgeting Practice Handout 1: Needs & Wants Handout 2: Needs & wants Example Assignment : Needs & Wants
  15. 15.  Remember our class discussion rules! (5minutes/student!)1. Why do you think a budget is important in healthy family/personal financial planning?2. What happens if we spend more than we earn?3. How can we avoid overspending?
  16. 16.  Instructions: Assignment 3: Monthly Budgeting: Monthly Expenses & Weekly Savings
  17. 17. It’s question time!!!!Do you have any questions about today’slesson or assignments?Ask now! 
  18. 18. 1. What is a budget?2. Why do we need a budget?3. What is an expense?4. What is a need?5. What is a want?6. How do we calculate monthly expenses & weekly savings?
  19. 19.  Step One: Complete the GCF Learn Free- Pay Bills Money Tutorial: http://www.gcflearnfree.org/everydaylife/paybills Step Two: Write down the specific information you were asked to locate in the Pay Bills game. Answer this question:Why is it important to read your bills and how does paying bills relate to budgeting?
  20. 20.  Step Three: Read the following websites: http://smallnotebook.org/2008/09/30/your-family- budget-step-by-step/ http://todaysfamilybudget.com/ http://www.mint.com/blog/how-to/create-personal- budget-online-creating-an-emergency-fund/ http://financialplan.about.com/od/budgetingyourmoney/ ht/createbudget.htm http://budgeting.thenest.com/preparing-personal- household-budget-3309.html Step Four: Complete the Budget Worksheet using the Budget Worksheet Example & Instructions. Submit the Assignment to your instructor at: bspearman000@gmail.com for credit.
  21. 21.  http://www.teachertube.com/viewVideo.php?video_id=188822&title=Creating_a_Budget http://www.youtube.com/watch?v=K0cITzKS7Tg http://www.youtube.com/watch?v=BoSJ2xvy3nY http://www.gcflearnfree.org/money http://www.makeuseof.com/tag/excel-spreadsheet-techniques-to-make-a-personal-budget/ http://smallnotebook.org/2008/09/30/your-family-budget-step-by-step/ http://todaysfamilybudget.com/ http://www.mint.com/blog/how-to/create-personal-budget-online-creating-an-emergency- fund/ http://financialplan.about.com/od/budgetingyourmoney/ht/createbudget.htm http://budgeting.thenest.com/preparing-personal-household-budget-3309.html http://dictionary.reference.com/browse/budget?s=t http://dictionary.reference.com/browse/Wants?s=t http://dictionary.reference.com/browse/Needs?s=t http://dictionary.reference.com/browse/Debt?s=t http://dictionary.reference.com/browse/Expenses?s=t

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