Money Matters Budgeting

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Money Matters Budgeting

  1. 1. Money<br />Matters<br />
  2. 2. Objectives<br /><ul><li>List the steps for setting financial goals
  3. 3. Track daily spending habits
  4. 4. Prepare a personal spending plan to estimate monthly income and expenses
  5. 5. Identify spending plan tools that will help you manage your bills</li></li></ul><li>What Do You Know?<br />What do you know about managing your money?<br />
  6. 6. What Do You Know?<br />Pre-Test—Goes in Binder<br />
  7. 7. Setting Financial Goals<br />Make them specific towhat you want within a certain time period<br />Identify and write down your financial goals<br />Organize your financial goals<br />Educate yourself<br />Evaluate your progress<br />
  8. 8. Budget<br />Spending and savings plan based on your expected income and expenses<br />Must balance—Money coming in (earnings) must equal money going out (spending + savings)<br />
  9. 9. Why Create a Financial Plan?<br /><ul><li>A financial plan:
  10. 10. Orderly program for spending, saving, and investing the money your earn
  11. 11. Helps you reduce anxiety
  12. 12. Gives you a sense of control over your money
  13. 13. Helps you build assets</li></li></ul><li>Assets, Liabilities, Net Worth<br /><ul><li>Assets – items of value you own
  14. 14. Liabilities – amounts of money you owe others
  15. 15. Net Worth = Assets - Liabilities</li></li></ul><li>Asset Liability Worksheet<br />
  16. 16. Financial Plan Steps<br />Keep track of your daily spending<br />Determine your monthly income and expenses<br />Find ways to decrease spending<br />Find ways to increase income<br />
  17. 17. Track Daily Spending<br /><ul><li>Do you know where your money goes each month?
  18. 18. Understand where your money goes by tracking your spending
  19. 19. Use a personal spending diary</li></li></ul><li>Determine Income and Expenses<br />Income is money that comes from:<br /><ul><li>Wages
  20. 20. Self-employment income
  21. 21. Public assistance
  22. 22. Child support or alimony
  23. 23. Interest and dividends
  24. 24. Social Security
  25. 25. Other sources (e.g., tips)</li></li></ul><li>Disposable Income<br /><ul><li>Money you have left to spend or save after taxes have been paid</li></li></ul><li>Expenses<br /><ul><li>Fixed expenses do not change from month to month that you must pay.
  26. 26. Variable expenses often change from month to month.
  27. 27. You may have some control over how much you pay.
  28. 28. Shop for the best value before committing to any payments.</li></li></ul><li>Monthly Income and Expense Worksheet<br />Complete Monthly Income and Expenses<br />worksheet. <br />List monthly income sources and income amounts to the left. <br />List monthly expenses and amounts to the right.<br />
  29. 29.
  30. 30. Decrease Spending<br /><ul><li>Decreasing spending increases your cash flow
  31. 31. What are some ways you can cut back on your spending?</li></li></ul><li>Monthly Payment Calendar<br />Complete the Monthly Payment Calendar with Information on Next Slide<br />Enter the income and expense amounts on the appropriate dates. <br />
  32. 32.
  33. 33.
  34. 34. Other Spending Plan Tools<br />Expense Envelope System<br /><ul><li>Budget Box System
  35. 35. Computer Spreadsheet System</li></li></ul><li>When There Are More Expenses Than Income<br /><ul><li>What payments should you make first if you cannot pay all of your bills?
  36. 36. Pay your necessary household expenses first (rent, mortgage, food)
  37. 37. Think about the health and safety of your family when prioritizing bills
  38. 38. Seek assistance to help cover expenses</li></li></ul><li>Summary<br />What final questions do you have?<br />What have you learned?<br />How would you evaluate the training?<br />
  39. 39. Post Test<br />
  40. 40. Conclusion<br /><ul><li>You have learned:
  41. 41. The benefits of budgeting
  42. 42. How to create a financial plan to track your daily spending and monthly income and expenses</li>

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