Basic Brush up Professional Development Basic Brush UpSlide 1

Welcome Introductions Health and Safety Housekeeping Icebreaker Basic Brush upSlide 2

Aim To help budget advisers recap on the basic budgeting fundamentals associated with understanding and using a budget worksheet, debt schedule and a long term cashflow as effective budgeting tools. Basic Brush upSlide 3

Objectives 1.Identify the circumstances that bring clients to budgeting services 2.Understand the elements of a typical ongoing budgeting sequence 3.Understand and demonstrate the use of the debt schedule 4.Identify and demonstrate the long term use of the cashflow Basic Brush upSlide 4

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Prioritising debt Urgent debts are classed as: – Arrears for basic essentials – Overdue and where action is being initiated – Carrying the greatest penalties – Likely to cause further hardship Basic Brush UpSlide 9

When Prioritising debt We Should: Keep paying debts to avoid penalties, arrears and legal action Take care of medical bills Prioritise debts important to the family Deal with small debts Deal with old debts Basic Brush UpSlide 10

Basic Brush UpSlide 11 NZFFBS Inc Client Debt Schedule Key: Security:Creditor: Type: 1. Secured1. Government Dept.1.Credit Card 16th April 20XX 2. Unsecured2. Courts2.Credit Contract (HP) 3. Telecommunications3. Loans Aleesha Gray 4. Utilities (gas/power)4. Other 5. Accommodation 2B Sunny Way Christchurch 6. Retail goods 7. Professional Services 8. Bank Loans Advisor: Sally 9. Finance Company Loans 10.Mortgages 11. Family/Friend/Other Loans Creditor Name and Contact Details Total DebtSecurityCreditorTypeTotal ArrearsRepay RateFrequencyPriorityComments Bob Blue - rent $ Watts Energy $ $ Grandma' $ $ 10.00wk2 LV Smiths (credit sale) $ $ 50.00m3 ANZ Visa $ 2, $ m4 Layby - shoes $ $ 10.00wk5 Totals $ 3, $ /week This is a special item under development for the NZFFBS Inc Client Voices Project and not for general distribution © 2006 Stationery Item No. 1BUD203

Basic Brush UpSlide 12 CASH FLOW FOR (NAME)………………………………………... Week of: Bal brought fwd Income Total Funds Expenditure Total Expenditure Balance : Total funds - expenditure

Recap of key points 1. A wide range of issues bring people to a budgeting service 2. Be careful when making commitments to creditors 3. Refer to and use the debt schedule 4. Clients must be primarily responsible 5. Cashflows are an excellent tool for clients and advisers to track & monitor progress. Basic Brush UpSlide 13