1. CUTTING BACK
(NEEDS vs. WANTS)
SESSION # 3

2. SPENDING TRACKERS
• How did everyone do tracking their
spending the last week?

3. Balancing our Budget
• Last session we determined whether we spend
more than we have
• We also learned whether we are saving any
money each month or not

4. Balancing our Budget
• IF you are spending more than you have
OR
• IF you want to save more:
• YOU NEED TO CUT BACK

5. NEEDS
• A need is something essential, meaning you
require it to survive
• Food
• Shelter
• Water
• Heat
• Electricity

6. WANTS
• A want is something nice to have.
• It may be important to you, but it’s not
required to continue living

7. WANTS vs. NEEDS
• It’s important to learn to set spending
priorities
• Decide what is most important so that you
will have the money for the things you
REALLY need and want

8. WANTS vs. NEEDS
WANTS NEEDS
Cell phone Shelter
Tim Horton’s Water
Car Food
Cable SOME clothing
Internet
Ipods
computers
cigarettes
alcohol

9. CHALLENGE
• Make a list of things you purchase or pay
for that are WANTS, not needs

10. CHALLENGE
• Highlight the items on your list that you
can cut back on or eliminate all together

11. CHALLENGE
• Beside each item you have highlighted
calculate how much money you can save
each month by cutting back

12. CHALLENGE
•Are you richer than you think???

13. CHALLENGE
• Keep your calculations about cutting back
in a safe place
• In session # 4 we will be setting financial
goals based on your findings

14. CUTTING BACK
• To help yourself spend less, you first need to
understand what makes you spend money?

15. CUTTING BACK
• Ask yourself the following questions:
• What motivates me to buy things? Friends,
advertisements, trendy styles?
• Does the urge to buy something die the next
day?
• Do my purchases make me happy?
• What “needs” are now collecting dust?
• What can I learn to live without?

16. CUTTING BACK
•Now that you know what things are
contributing to you over spending you
can make adjustments

17. CUTTING BACK
• Avoid trips to stores, shopping malls & online
shopping websites
• If you don’t NEED to go to any of these places,
don’t go

18. CUTTING BACK
• Pay cash for purchases and only spend the cash
you are carrying
• Don’t use credit cards or debit cards because
sometimes they make buying things too easy

19. CUTTING BACK
• If you choose to
have a credit card
freeze it in a block
of ice and keep it
in your freezer so
you can’t use it to
impulse buy!

20. CUTTING BACK
• If you think you need or want something, sleep
on it and decide the next morning if you still
want it

21. How else can we cut costs?
• Price matching/comparison shopping
• Avoiding name brand products
• Reducing utility usage
• Reducing rent costs
• Participate in free community activities

22. Comparison Shopping
• Do your research before doing your shopping
• Read the flyers
• Check pricing online or in a variety of stores
• Ask friends and family for advice
• Choose the store with the best price
STORE PRICE
Walmart $79.99
Canadian Tire $89.99
Future Shop $109.99

23. Price Matching
• A lot of businesses will match
the price advertised at another
store
• Example:
• Walmart allows you to bring in
other stores’ flyers and pay the
amount advertised in the flyer
• This will save you the time and
transportation costs involved in
going to different stores to receive
sale prices

24. Use Coupons
• Check newspapers, flyers, and online for coupons

25. Use Points Cards
• Some grocery stores offer points cards
• These points cards allow you to receive free
groceries once you have earned a certain
number of points

26. Avoiding Name Brands
• Stores will usually have a store brand that is
cheaper than the name brand products
• Examples:
• No Frills – No Name or President’s Choice
• Freshco – Compliments or Signal
• Walmart – George or Great Value
• Food Basics – Equality

27. Reducing Utility Usage
• Turn your heat down & wear an extra sweater
• Turn your air conditioning down or off
• Make sure all electronics and lights are shut off when you
aren’t using them
• Hang your clothes outside to dry instead of using a dryer
• Use left over dish or bath water to water your lawn in the
summer

28. Reducing Rent Costs
• Offer to assist with building
maintenance in return for
reduced rent
• Take on a roommate or live
with family

29. Participate in FREE Community
Activities
• Use the internet or newspapers to
search for local community
activities that are low cost or FREE
• Local Community Festivals
• Canada Day shows/activities
• Parks
• Swimming free days at the local
pool
• Free public skating at your locale
arena

30. Any other suggestions?

31. Milestone # 37
•Use flyers & price lists to compare
& calculate

32. Next Class
• Make sure to continue using your
spending tracker notebook
• Setting financial goals
• Saving for wants / the future
• Paying off debt