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Edte 660 final project money management budget



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Edte 660 final project money management budget

  1. 1. DAY 1
  2. 2. Money Management: Budget + Planning SMART Goals 01 Needs vs. Wants 02 Income +/- Expenses 03 Savings plus Interest 04 It’s All About the Benjamins 05
  3. 3. What is a budget? • The aim of a budget is to estimate and plan current and future cash expenses. • Budgets are important for planning, tracking, and sticking (to) a financial goal(s).
  4. 4. Download: SMART Goal Worksheet Download/Print and fill out the SMART worksheets initial goal section for a short-term, mid-term, or long-term goal.
  5. 5. How Much Do I Need To Save?
  6. 6. Research What might you take into Consideration when you buy something? What features of this product are most important for my needs? my wants? What quality do I want? What quality do I actually need? Are there discounts or sales that can help me save? Have I tried comparison shopping? What is my budget?
  7. 7. Price Comparison Search the internet for your goal and compare the prices on at least three (3) similar quality, and quantity item. Add the estimated cost to the SPECIFICS section of your SMART Goal worksheet. Filling in any other necessary details, such as taxes, fees, or insurance, as needed to get a more accurate estimated total purchase price.
  8. 8. DISCUSISON What are your values on budgeting and saving?
  9. 9. Vocabulary Words How can you use these words in an example sentence? Budget: A budget is a plan for your spending during a set period. A budget should be based on your income and ensure you spend less than you make. Expenses: An expenditure of money; a cost.
  10. 10. DAY 2
  11. 11. What Are Wants vs. Needs? Needs • Rent or mortgage • Utility bills • Healthcare and/or therapy • Medication • Food • Work uniform • Transportation/Commuting Wants • Entertainment • Dining out • Home purchases • Travel • Electronics • Monthly subscriptions or memberships • TV or music streaming accounts • New clothing When you fill out a budgeting worksheet, you categorize your spending as either wants or needs. This separates your expenses into what is absolutely necessary for your well-being and survival (needs) compared to what you would like to have but do not require (wants).
  12. 12. "Needs" That Are Really "Wants" • Cable or Satellite TV • Internet • Dining Out - Restaurants • Fast Food/Casual Eateries • Clothing • Gym / Fitness Club • Beauty Products • Subscriptions (magazine, Netflix, etc.) • Professional / Club dues • Hobbies and Sports • Lessons (Music, Art, etc.) • Holidays and Gifts • Charitable Donations The line between wants and needs is sometimes blurry, and it can be hard to separate out which expenses belong in which category. There can be different reasons for this. Most budget overspending occurs within the “needs” that are really “wants” category often called discretionary expenses. You may not have thought about how much your gym membership costs, how much you were spending dining out or on morning coffee. However, if you're trying to save for a house and are trying to figure out why you have no money left at the end of every month, it pays to scrutinize your discretionary expenses.
  13. 13. Download: Wants vs. Needs Worksheet Download/Print and fill out the Wants vs. Needs worksheet.
  14. 14. Income Types Earned Income: income stream through a job. Profit Income: by selling for more than the cost. Interest Income: compound interest to gain a passive income. Dividend Income: when you buy shares in a company Rental Income: property. investment Capital Gains Income: buying and selling assets; stocks and shares. Royalty Income: making something unique and charging to use it.
  15. 15. Download: Daily Spending Log Worksheet Download/Print and fill out the Daily Spending Log worksheet.
  16. 16. Expenses Food And Groceries Utility Bills Transport Expenses Loan Repayments Loans Mortgages Credit Card Debt
  17. 17. DISCUSISON Can you identify your Good and Bad spending habits and the values around tracking spending?
  18. 18. Vocabulary Words How can you use these words in an example sentence? • Bank Account: Funds deposited in a bank that are credited to and subject to withdrawal by the depositor. • Cash Flow: The cash receipts or net income from one or more assets for a given period, reckoned after taxes and other disbursements, and often used as a measure of corporate worth. • Credit Card: A plastic card, with a magnetic strip or an embedded microchip, connected to a credit account and used to buy goods or services. It's like a debit card, but money comes not from your personal bank account, but the bank lends money for the purchase based on the credit limit. Credit limit is determined by the income and credit history. Bank charge APR (annual percentage rate) for using of money. • Debt: Something owed, such as money, goods, or services. An obligation or liability to pay or render something to someone else • Discretionary: Available for use as needed or desired • Expenses: Something spent to attain a goal or accomplish a purpose. • Interest: The percentage of an amount of money charged for its use per some period of time (often a year). • Loan: A sum of money that is lent, usually with an interest fee.
  19. 19. DAY 3
  20. 20. Download: Make A Budget Worksheet Download and fill out the Make A Budget worksheet and then print.
  21. 21. Do You Have Discretionary Spending or Need To Cut Down? Cash Flow Negative Cash Flow
  22. 22. Negative Cash Flow: Budget Corrections Adjust? Adjust?
  23. 23. Download: SMART Goal Worksheet Download/Print and fill out the SMART worksheets achievable, and realistic goals section for a short-term, mid-term, or long-term goal.
  24. 24. What Are The Values Of Savings?
  25. 25. Vocabulary Words How can you use these words in an example sentence? Discretionary Spending: Money that is available for use as needed or desired. Cash Flow: The pattern of income and expenditures, a person has resulting availability of cash. Negative Cash Flow: Refers to the situation when your cash spending is more than cash generation.
  26. 26. Saving is essential to building your long-term wealth, and it is important to save early in life and often. Regardless of your age, you should save a percentage every time you receive money, whether it’s from a paycheck or a monetary gift. The everyday decisions you make about money can have a lifelong impact. Saving allows you the freedom and flexibility to fulfill your goals and helps you develop good personal finance habits. $aving DAY 4
  27. 27. Types of Saving Account • Basic bank savings accounts offer the lowest interest rates, usually less than 1 percent. They come with few restrictions on access to your money, and they don’t usually have required minimum balances. These accounts associated with brick-and-mortar banks also can be accessed online. • Money market accounts are high-yield accounts that pay interest based on the current market rates. They are likely to require a higher minimum balance than a basic bank savings account. • Online savings accounts are typically similar to basic bank savings accounts, but they offer higher interest rates because they operate online and don’t involve the overhead that standard banks have. • Credit unions are like banks, but they’re owned by their members and may offer higher interest on savings. • Automatic savings plans are options you can set up for your savings account. You can choose to automatically transfer a set amount from your checking account to your savings account every month.
  28. 28. $aving • The longer you leave your savings untouched in a bank, the more your money will grow. Limiting how often you withdraw money from your savings account and only doing so if you really need it.
  29. 29. 5 Tips for $aving 1. Make savings a priority. Each time you’re paid, put a portion of it toward savings. Saving money is a good habit no matter how much or how little you put away each month. 2. Automate your savings. Most financial institutions allow you to automatically transfer funds online or via mobile apps from checking to savings accounts. 3. Find money to save. Keep track of everything you spend for a week – you’ll be surprised where the money goes. Adjust your spending habits a little and suddenly, you’re saving. 4. Keep the change. Some supermarkets have machines that count your coins and give you cash in exchange for a small fee. Gather up your spare change, pour it into the kiosk and see how much your coins add up to. Instead of spending it right away, consider diverting your newfound funds to savings. 5. Cancel extra costs. Check to see if you have any old subscriptions that you’re not using anymore – whether it’s to a gym, magazine, or streaming service that you no longer use. Many services that you may no longer want could cost you hundreds of dollars per year.
  30. 30. Compound Interest Compound interest can have a dramatic effect on the growth of regular savings and initial lump sum deposits. Determine how your savings will grow by analyzing your financial habits.
  31. 31. Compound Interest Calculator Click the link to use the Compound Interest Calculator to estimate your potential interest through savings. $ave More Money
  32. 32. Savings Goal Calculator Click the link to use the Savings Goal Calculator.
  33. 33. Download: SMART Goal Worksheet Download/Print and fill out the SMART worksheet Timely goals section for a short-term, mid-term, or long-term goal.
  34. 34. What Are The Values In Monitoring Spending Habits and Tracking $avings?
  35. 35. Vocabulary Words How can you use these words in an example sentence? Bank Account: A fund deposited by a customer (the depositor) in a bank from which they can make withdrawals. Compound Interest: Interest computed on the accumulated unpaid interest as well as on the original principal. Interest, as on a loan or a bank account, that is calculated on the total on the principal plus accumulated unpaid interest. Expenditures: An expense. Interest: The percentage of an amount of money charged for its use per some period of time (often a year). Investment: Property or another possession acquired for future financial return or benefit. Savings Account: A bank account designed for a client's savings, which compared to a current account typically entails withdrawal restrictions but yields a better interest.
  36. 36. If your total for savings is $0 or less, it is time to rethink what you earn and spend. DAY 5
  37. 37. Download: SMART Goal Worksheet Download/Print and fill out the SMART Goal section and revise as needed.
  38. 38. After Completing the SMART Goals Worksheet What Are Your Values of Budgeting and Saving?