1. Budgeting—why and how?

2. Warm up
Why do we budget?? Think beyond practical answers– why is this an important skill to master?
Do you consider yourself a master at managing money? Why or why not? Explain with evidence.

3. Why do we budget?? The answer of course is obvious—to save money
It is vital that we learn the skill of budgeting so that we can be smart in the future– especially as you begin to manage more money
Also, we budget to allow opportunities to save and manage money in order to invest in the future
School
Travel
Living Expenses
Larger investments later—car, apartment deposit

4. Questions to Consider
Where do you spend the most money? Which categories?
How much money do you save?? Could you save more?
How will your budget change when you go to college next year?
What new categories will you need to add to your budget?
What trade-offs do you make to save money?

5. Fixed vs Flexible
Fixed costs are those that do not change from month to month--- these are typically considered NEEDS
Rent
Utilities
Car Payment
Car Insurance
Flexible Costs are those that can fluctuate and change depending on the month
Food
Shopping
Gas

6. Budgeting Categories
A budget is a document that shows how much money you earn versus how you spend it
Therefore, you must consider both your INCOME and your EXPENSES
Budgets include fixed and flexible items– what are the differences between these two?? Examples??
Do we include savings as income?? Why or why not?

7. Let’s Try Monthly Budget
What is your income?? This can be wages, help from family, etc.
Fixed Expenses– any?? Itemize and Amount
Flexible expenses?? Groceries, food, gifts, personal items, transportation, entertainment
Total Fixed and Total Flexible
Does this meet/exceed/or is below your income?
Where can you decrease your expenses?

8. Mint app If you have your phone, download the Mint app
This app can help you save, budget, and decide where your expenses are truly coming from
Let’s get specific!!

9. Why is this important??
Why do we focus on budgeting, and how will this help you in the future?
Think of something you are saving for, and how much that item costs. What can you do over the next year to save?
HINT—think about putting away 1 dollar, some extra change, 5 dollars a week!!

10. Common Scenarios