1. Journal #18 ► ► What part of the interview is more important…the things you say or how you say them? Explain.

2. Budget The Foundation of Healthy Consumerism RRRR eeee aaaa ssss oooo nnnn ssss f f f f oooo rrrr F F F F iiii nnnn aaaa nnnn cccc iiii aaaa llll P P P P llll aaaa nnnn nnnn iiii nnnn gggg

3. “Budget Busters” Give yourself five points if you have a budget. Give yourself five points if you have a checkbook. Deduct a point if you have ever bounced a check. Deduct a point if you bought something this week without comparison shopping. Give yourself a pint if you bought a store brand, rather than a name brand item this week. Give yourself five points if you have a savings account. Give yourself five points if you added any money to your savings account this week. Give yourself five points if you pay your own car insurance (or part of it) Deduct five points if you routinely carry more than $10.00 in your purse or wallet. Give yourself five points if you have a method of recording what you spend.

4. “Some Money Facts”  $ The average person spends money three times a day.  $ A movie with popcorn and a soft drink can easily cost $20  $ Just one soft drink a day for.99c adds up to $361.35 in a year  $ What’s the biggest expense item for teenagers? FOOD!

5. Money Matters:  How many times a day do you spend money?  Happiness Vs Unhappiness  Money problems stay with you for the rest of your life.  Top reason for divorce is financial.  Finances affect everything else in your life.

6. 2001 in Utah  Nearly 94,000 people under 25 filed for bankruptcy  Average in the US is 1 in 69 file for bankruptcy  Average in Utah is 1 in 34 file for bankruptcy  Rise in 18-25 year olds moving back in with parents  College students have $3,000 in credit card debt 10% owe $10,000 or more in credit card debt 10% owe $10,000 or more in credit card debt  Chapter 7 bankruptcy – no payment necessary  Chapter 13 bankruptcy – set up payment plan to pay back  5,539 in 2003 filed for bankruptcy by April

7.  The cost of living in Utah is the same as the national average  The average income in Utah is below the national average  Teens Today – Spend and Influence $172 billion annually ($105 of own money, $48 of family money) Average of $104 per week  Without a monthly check most families would last 1 to 2 mos.

8. Personal Savings  – does not include 401 K, retirement, etc.  Use for emergency, unplanned bills.  Retirement funds = Penalties  We always come up with a good reason not to save.

9.  87% of retires are retiring with $10,000 or less  Wealth is not what you spend but your net worth or accumulative wealth, what you have.  80% of millionaires have accumulated slow and steady  What is the portrait of a millionaire? Live in same city/town for over 20 years Live below their means Married 1 time and still married Usually owns a chain of stores or similar  At age 20 if you save $200.00 a month at 10% interest you will be a millionaire by the age of 55.

10. Ways to improve your finances  Make more money  Cut your expenses  “Wait and win the lottery” system  Have a budget

11. Discussion:  What is a Budget?  Why do you have a budget?

12. Pitfalls of Not Having a Plan  Lack of understanding of money  Failure to reach financial goals  Not enough money to pay bills  Possible debt/creditor problems  Missed opportunities  Tax trouble  Family/relationship trouble

13. Budgeting Terms  Budgeting  money management  gross income  net income  bank accounts  joint bank account  separate bank account  fixed expenses  flexible expenses

14. What is included in a budget for a family in a given month?  How does the typical family spend its money? Housing30%Transportation 20% Food 15% Insurance 7% Savings 10% Other 18%

15. CNNMoney.com Top 10 budgeting list  1. Budgets are a necessary part of a spending plan.  2. Three steps to budgeting.  Track your money  Set goals  Track spending and compare to goals

16.  3. Use Software like Quicken or Microsoft Money  4. Concentrate on the areas you need to work on most  5. Watch out for cash leakage  6. Beware of overspending and using credit.

17.  7. Watch out for luxuries disguised as necessities.  8. Spend no more than 90% of your income. Save the rest.  9. Don’t count on windfalls.  10. Beware of spending creep.

18. Budgeting Tools Software Spreadsheet Envelope Method Checking/Savings Account

19. The Living Budget Track and record spending Review frequently Revise as needed

20. Teen Budget Activity: Analyze your two week spending record. Set a two week financial goal Create a personal budget to follow the next two weeks. Follow the budget for the next two weeks. At the end of two weeks evaluate your spending plan. Write a one page response paper. What did you do well, What do you need to change? What are the benefits of a budget?