MoneyCounts: A Financial Literacy Series Budgeting Penn State Financial Literacy & Wellness Center 011A Grange Building University Park PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214
Description
Learning Outcomes Understand the concept of budgeting Identify the making of a budget Create a personal budget Forecast a future budget
What is Budgeting?
SMART Goals
How to set SMART Goals? General goal Be Free of Credit Card Debt
SMART goal steps: Identify the credit cards (specific) Verify the amount owed (measurable) Decide how much extra payment to send each month to meet your goal (attainable) Calculate how much you can spare from your budget to pay off debt (realistic) State when you want to reach your goal (timely)
SMART goal I have 2 credit cards I owe $2,400 on them combined. Visa and a Mastercard. I owe $2,400 on them combined. I would need to pay $200 each month, which I can afford in my budget, to pay off the debt in one year time. Once I am free of this debt, I will charge only things that I need and able to afford to pay back in full and on time by the due date of these credit cards.
Collecting information
Life cycle of receipts Paper receipts Electronic purchases Purpose and life cycle Electronic purchases Debit transactions Credit transactions
Organizing information
Tracking money coming in
Income versus loans/debt Earning Employment Investment income Borrowing Loans Credit cards
Financial assessment
Tracking money going out
What gives?
Identifying expenses
Spending leaks Identifying spending leaks Correcting spending leaks Focus on goals Set priorities
Balancing the budget
MoneyCounts: A Financial Literacy Series Thank you! Comments and Questions Penn State Financial Literacy & Wellness Center 011A Grange Building University Park PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214