Core Content: Students will identify financial management practices and the purposes of budgeting, savings,banking services (Checking,savings,debit,credit certificate of deposit..

 Piggy Banks  Under the bed  In a box  Give it to mom  Bank  Credit Unions

When you are working regularly and earning more money, you’ll need a budget. A budget is a plan for saving and spending money.

You’ll probably have more items listed than money to pay for them. Prioritizing will help you clearly see which goals are wants and which goals are needs.

A budget is based on your income—the money you expect to have coming in—and your expenses—the money you will pay out for goods and services.

The first step to making a budget is to list the things you need or want.

Divide your goals into short-term and long-term goals. Short-term goals are what you need or want to spend money on now or within the next 12 months. Long-term goals are spending or savings goals that take a year or more to reach.

Write down the amount of money each goal will cost.

Write down how much money you expect to have coming in. Include all your sources of income.

You will have two kinds of expenses: fixed expenses and flexible expenses.

Fixed expenses are expenses you have already agreed to pay and that must be paid by a particular date.

Flexible expenses are expenses that come irregularly or that you can adjust more easily.

Your income should be equal to or more than your total expenses. If your income isn’t equal to or more than your expenses, you may have to make changes.

When making changes, look at your flexible expenses.

Remember, a budget is a spending and savings plan. A savings plan helps you put money aside for long-term goals and unexpected needs.

Many people choose to put 10 percent of their income aside for savings.

$ $ $ $ $ $ $ $ Staying Within Your Budget Graphic Organizer Keep track of your spending. Don't carry around a large amount of cash. Shop smart. Whenever possible, pay with cash.

You can make more money by keeping your money in the bank. The bank will pay you money known as interest to use the money in your savings account.

Your budget should be adjusted to fit your needs and wants. Check your budget at the end of every month.

Why is it important to be flexible about your budget? What problems might arise if you are too flexible about your budget? Critical Thinking Q Q continued

It is important to be flexible about your budget because your wants and needs may change, or something unexpected may happen. If you are too flexible about your budget, however, you may lose sight of your priorities and not have enough money for them. Critical Thinking continued A A

 1. Find all the deposits in your checkbook.  2. Add deposits up and place that amount onthe total income line of your budget form.

Rent Bill $5.00 x 5 = $

Transportation Bill.25 a week.25 x 5 =

4. Write the amount you spent on your budget sheet in the correct column

6. Subtract your expenses from your income to see if you have enough money to go on the fieldtrip