Keeping a Budget and Saving Money Add curriculum notations/logos

Introductions INSTRUCTOR’S CONTACT INFO HERE w/ logo were BANK ON logo is.

Best thing I do with money My name is ___________ , and the best thing I do with my money is __________________ . Activity 1 – To break the ice, use this money-mixer with the participants (especially if they do not know each other). Invite each person in the group (including yourself ) to complete this sentence out loud: My name is __________________ , and the best thing I do with my money is __________________ .

Objectives Learn how to set financial goals Identify what type of buyer or spender you are Identify ways to increase income and decrease spending

Setting financial goals What is a financial goal? What can it do for you? Helps you reduce money-related anxiety Gives you a sense of control over your money Helps you build assets to improve your quality of life. Setting financial goals = benefits of budgeting. Define a financial goal. Define what it does. May have to explain what “assets” are.

What is a spending plan? Better known as a budget A step-by-step plan that matches expenses and income over a given period of time. Spending plan = budget.

Spending plan steps Keep track of your daily spending Determine your monthly income and expenses Find ways to decrease spending Find ways to increase income

What type of buyer are you? Bargain Buyer Emotional Buyer Get-Even Buyer Status-Seeking Buyer Wishful Buyer Satisfied Buyer Activity 2 – Are you a buyer or a spender? Provide in-class worksheet to all students. “What type of buyer are you? Well, we’re going to find out. Many things influence our buying. Our attitudes about money can play a big role in how we spend money. Understanding how buying things makes you feel, or why you shop at certain times, may help you understand why your spending doesn’t always match up with what is really important to you.”

Determine your income Income is money that comes from Wages Self-employment income Public assistance Child support or alimony Interest and dividends Social Security Other sources (e.g., tips)

Determine your expenses Fixed vs. Flexible Fixed: Do not change month to month. Flexible: Often change month to month. You may have some control over how much you pay. Shop for the best value before committing to any payments. Need fixed and flexible examples.

Keeping accurate records Saves time and money Keep records in a safe place Organize your files so it is easy to update and find important financial information Keep your tax records for at least 3 years Mail bill payments at least 1 week before they are due to avoid late fees

Bargain Buyer Emotional Buyer Get-Even Buyer Status-Seeking Buyer E. Wishful Buyer F. Satisfied Buyer 1. 2. 3. 4. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

What Type of Buyer Am I? 1.I am more interested in getting a bargain than in what I buy. 2.Buying something makes me feel better when I’m unhappy 3.Sometimes I buy something because it will annoy someone else. 4.Sometimes I buy things to feel important and gain status. 5.I buy products that claim to hide my age. 6.I comparison shop and gather all the facts before I buy. 7.I enjoy deals so much that I buy things I don’t need or can’t use. 8.I buy things when I am having a bad day. 9.I feel neglected, so I buy something even if I don’t like it. 10.I am willing to pay more for a product that will make me stand out from the crowd.

What Type of Buyer Am I? 11.I buy products to be more sexually appealing to others. 12. I use the facts and ignore the influence of ads. 13.I feel I am beating the system when I get items on sale. 14.I buy things I don’t need to make myself feel better. 15.I buy things that I complain about or that make me unhappy. 16.I pay extra to get something exactly the way I like it. 17.I buy products that promise to make me feel younger, sexier, or better looking. 18.I have a plan and get a lot of satisfaction from the money I spend.

Instructors guide