Budgeting and Money Management

How to set up a budget? Budget- plan for saving and spending your income 1. Determine your income 2. Track your expenses 3. Categorize Expenses 4. Set up a plan and stick to it!

Budget Breakdown A well planned budget is suggested to include these percentages: Fixed expenses = 60% Savings = 20% Retirement = 10% Fun = 10%

Bank Accounts Checking Accounts Minimum balance requirements Overdraft fees – when you spend too much Banks require multiple forms of ID, SS #, proof of residency, etc

The Cost of Accounts Bank accounts are not free! Banks sometimes charge for checks, online banking, etc Require minimum monthly deposits or balances to stay open

Accessing your Money ATM Only Cards Debit Cards Checks Online payments

Savings Accounts Standard savings accounts: Require a relatively small deposit Require you to maintain a minimum balance Allows access to you money at any time Pays a very low interest rate –fee for using your money Average is 0.06%

Investing Money market accounts Higher rate, limited access to funds CDs (Certificate of Deposit) Highest interest rate, penalty to withdraw before maturity date Stock Buying shares in a corporation, paid quarterly from profits 401(k) Plans Worker invest tax-exempt money into a retirement plan

Keeping Track of Spending Keep receipts (especially donations) Have paychecks directly deposited Check monthly bank statements for errors Use online banking website/app – set up reminders and notifications Keep check registry up to date and use carbon copy checkbooks Stick to your budget!