Lesson 7.1 Budget Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved1 Introduction A budget is simply a tool to help you manage and control your money. Your knowledge of budgets and willingness to use one will affect your future financial wellbeing. The spending decisions you make when you first enter the work force can affect your life for many years. A budget can help ensure you are spending less than you take home. An accurate and realistic budget is an excellent financial tool, but it is not magic.

Lesson 7.1 Budget Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved2 Define what a budget is and why a budget is important Describe what savings are and where they come from Identify what the logical cap to spending should be Explain what primary and secondary budget categories are and how they compare to your needs and wants Conclude which budget categories affect your health and welfare and which categories affect your quality of life Describe why a budget is dynamic and should be regularly updated Explain who should have and use a budget Define gross pay and take home pay Identify and define key budget terms Objectives You should be able to do the following after completing this lesson

Lesson 7.1 Budget Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved3 What a budget is Why people have and use budgets How budget categories are classified What the primary budget categories are What the secondary budget categories are Primary/Secondary Budget Categories Example You will run the following Interactive Example – What is a Budget? In this section, you will learn:

Lesson 7.1 Budget Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved4 How income is defined in the context of budgets How many sources of income most people have What gross pay is What take home pay is What savings are and what can be done with savings Why investments are important – Budget Terminology In this section, you will learn:

Lesson 7.1 Budget Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved5 What the term “life of a budget” actually means When you should begin using a budget How long you should use a budget Why it is important for a budget to evolve as you age How long the life of a budget can be In this section, you will learn: – The Life of a Budget

Lesson 7.1 Budget Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved – Budget Benefits How a budget empowers those who use them The primary benefit realized by those using a budget Some of the additional benefits realized by those using a budget What a lack of money can rob you of In this section, you will learn:

Lesson 7.1 Budget Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved – Who Needs a Budget? Which individuals a budget can help About budgets and the new bankruptcy law Who needs to have and use a budget How age affects whether you should use a budget In this section, you will learn:

Lesson 7.1 Budget Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved – Creating a Budget How much time it takes to create a budget The steps you go through to create a budget Budget Needs/Wants Exercise You will run the following Interactive Exercise In this section, you will learn:

Lesson 7.1 Budget Basics July 2011Copyright © … REMTECH, inc … All Rights Reserved9 Discussion Questions What are some of the important expenses that young adults should begin to save for as soon as they enter the work force? How can a young adult who has just entered the work force ensure they are living within their means?