What money management lessons will your children or even youth family members learn from you? What did your parents tell you about money when you were younger and what do you tell your children (or younger family members) now?
Business of Budgeting for the Family
EmpowermentThe Business of
for the Family
What is Money
Maintaining a budget
Tracking your spending
Controlling your spending
Having positive cash flow
Utilizing your money efficiently
What they say
“A budget is restraining and limits my
“I cannot solve my money problems unless I
make more money.”
“Budgets are complicated and take too much
Think about this…
We must understand all the aspects
that affect our money
What Kind of Message are
What do your spending habits say about how
you manage your money?
What do your spending habits teach your
How often do you include the well-being of
your family when making financial decisions?
Students perceive financial independence as
a means to achieve adult status. Although
some young adults in college learn to manage
their money well, many others overspend their
budgets, accrue credit card debt, and fail to
pay off debts on time.
7 Reasons to Budget
i. Less stress
ii. Less reasons to argue over money
iii. Assure our financial stability
iv. Teach our children and family
v. Protect ourselves from our temptation to
vi. Protect ourselves from unexpected
expenses, emergencies & unemployment
vii. Assure that our money grows
Let’s Rid Ourselves from the
Invent your own name
First Step towards Money
Attitude of Money
Before making your plan you must
change your perception of money and
your approach to money management.
Money can affect us emotionally. When
we have money to spend are feelings
towards money are positive. When we don’t
have it to spend, our sentiments towards
money can be negative. This can lead a
person to make emotional decisions
rather then logical ones.
Some times we try to keep up with Jones’
when in reality not even the Jones’ can
keep up with the lifestyle they lead. They
live an artificial life and we go through
leaps and bounds to mimic them.
We have to acknowledge our weaknesses
and identify our temptations so we can
take them in account when we make a
budget or every time we’re in a situation
where that temptation exists.
Why become a business
Achieve financial freedom
Pursue personal and career interests
What is a business supposed
Be a successful business
Grow and Expand
Increase revenue, increase production
Fulfill an Objective
Satisfy a need or want
Provide a service
You Are A Business
Treat yourself as if you were a business
A business as though every person with any
income has a cash flow
Cash flow is constant movement – the
incomes and outcomes of your money
The difference between the inflows and
outflows of your money determine if you have
negative or positive cash flow
It’s important because it measures your
capacity to save and arrive at your financial
A person that earns $3,000 a
month and spends $4,500 every
two months has a negative or
positive cash flow?
Is this person in line with their
How do you differentiate money
management for the home and for a
…As a Family
Must find out how much it costs to “run” your
How can you really know if you are using
good money management if you don’t
track your expenses?
Putting it in Perspective
Compares your total income with how much
you’ve spent for a specific expense.
What you paid = Expense Ratio
Your total income
If you earn $45,000 per year and you
spend $120 per week for food what is your
$6,240 ($120 X 52) per year.
Your Expense Ratio is…
How to Money Proof Your
Assure that the whole family participates
Take an honest look at your finances
Identify your weaknesses
Assign a family member
Designate a place
Know your credit score and history
Distinguish between needs and wants
Form realistic goals
My Temptations List
Brazilian & Haitian food
Chips & Soda
An honest look at your
Do I have savings, and if so, how much?
Has the percentage of my income to pay bills
Do I max out my credit cards?
Do you frequently miss payments?
Do you use reserved funds to get caught up on
What types of purchases do you make with your
credit card? Could you use cash?
Do you have a backup in case you lose your job?
Do you know how much you owe?
Do you know the interest on the debt you owe?
Do you receive calls from creditors attempting to
get payment on a debt?
Organize Your Documents
Keep receipts for large purchases
Use your bills to help create your budget
Always keep documents that deal with home
Cross check your W-2 income with your check
Keep your tax returns for at least 6 years.
Medical receipts ((insurance payments,
prescriptions, etc.)) should be kept for at least
Designate a Person
Elect a member in your household to be the
Designate a Place
Find a secure and safe place in your home
to store financial documents.
Make sure you know your credit score or
are at least up to date with your report.
My Needs and
Student Loans New Car
Money for Retirement Digital Camera
Cell phone Eating out
Clothing Europe trip
Cable TV Plasma TV
Healthcare $100 in savings
What was the Objective of
Money management is required to reach
any financial goal
Identify opportunities to spend
Determine monthly income
Calculate monthly expenses
Subtract monthly expenses from
Fix the Leaks in Your Money
☻Net Income vs. Gross Income
☻Not Comparison Shopping
☻Not comparison shopping…for better rates
☻Are you utilizing community resources?
☻How are you using credit?