1. BUDGETING TAKE CHARGE

2. What is a Budget? A PLAN for your money to meet your needs and wants. Helps to control spending and accomplish goals It is not meant to restrict you, but to have a realistic idea of your finances.

3. STEPS IN PLANNING A BUDGET 1. Set your goals2. Estimate your income3. Estimate your expenses4. Plan for savings5. Balance and adjust your budget

4. SETTING YOUR GOALS… What do you want to achieve this next month? Savings?Purchase? What is Important to you? Savings?Entertainment? What are your goals? Larger Purchase? Stability?

5. ESTIMATING YOUR INCOME… Net Income AKA Take Home Pay What you actually bring home Your paycheck minus deductions What are some other sources of income?

6. Estimating Expenses Fixed expenses paid at regular intervals, usually the exact same amount each month Examples: House payment, car payment, student loans, insurance, etc. Variable expenses may have to pay each month, the amount changes Examples: Food, utilities, gas & car expenses (not the loan), clothes, gifts, entertainment, etc.

7. SAVINGS & INVESTING AS PART OF YOUR BUDGET… PYF Pay Yourself First Recommended amount 10% Review Why would we make this part of the budget instead of seeing what’s left over at the end of the month? Answer Your budget should reflect our goals! And savings should be a part of your goals

8. BALANCE & ADJUST YOUR BUDGET Why would you need to change your budget? Prices change over time Personal goals change If you are over budget, what can you do? Increase income Decrease expenses

9. PERSONAL BUDGET INCOMETOTALS Work Allowances Lunch Money TOTAL INCOME EXPENSES Daily Lunches Supplies Snacks Entertainment SAVINGS Deposits TOTAL EXP & SAVINGS

10. CONSUMER GUIDELINES FOR SETTING UP YOUR BUDGET

11. WAYS TO STICK TO A BUDGET Shop with budget in mindPlan for large purchases so you know you can afford themNegotiate when possibleAvoid impulse buyingWatch for salesTrack purchases