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