2. The FEPS (Financial Empowerment and Problem Solving) Program is generously funded by the Ontario Ministry of Community and Social Services and delivered in partnership with:
These FEPS training materials and support documents created by West Neighbourhood House for the FEPS program.

3. How to effectively manage the money you have.

4. At the end of the workshop
At the end of this workshop you
will be able to define money and
how to control it by:
• Naming and performing the four steps
to build a budget
• Explaining the budget planning process

5. Money – What is it?
Instructor to ask participants to tell them what they think money is – write it on a flip chart. When all is done, re-iterate:
Money influences how we feel about ourselves to others;
Money is a tool;
More money is not the answer, gaining control is!
Instructor to tell story of how Credit Counsellors repeatedly see wealthy people come into their offices in credit troubles…they didn’t know how to control it! So more money is not the answer, learning to how to manage what you’ve got is! .

6. • How do you feel when there is money in your wallet?
Experience with money
• How does money make you feel?
• How do you feel when there is money in your wallet?
• How do you feel when there is no money in your
wallet?
THIS IS AN ICE BREAKER
Tell me about how money makes you feel?
- empowered, happy?

7. Money – How do you control it?
Use the example that just because you have something it takes skill to manage it.
Look at Michael Phelps – he has a skill, but he has to manage it. By practicing his skill daily, he is the best at what he does!
Managing money is a skill
Like most skills, it requires practice;
Even those with “lots of money” can experience problems if they don’t manage their money well!
Skill + Practice = Success

8. Goals and Dreams
Do you see a future free of financial worries?
What does that future look like?
This is why we are here today….Budgets ARE hard work, but if we stay with them, goals can come true!
Have them get into groups of 2 or 3 and discuss their answers.
Once they have talked for a few minutes, have them volunteer to share their answers with the group.
When the answers are finished, click on the last statement about WHY they are here today – to learn how to budget and stick with it!!!

9. Building a Budget
Get the audience to discuss “Why budgeting is important?”. Next ask, “What can happen when you don’t have a budget?”

10. BUDGET = INCOME VS EXPENSES
Building a Budget
Guidelines
If you want to make sure that
you’re not spending more than you’re
earning, you need to make a budget
BUDGET = INCOME VS EXPENSES
A budget is a plan for your money that maps out how much you make – this is your income;
And how much you spend – your expenses. It also helps you plan where you are today, and where do you want to be tomorrow.

11. A Four Step Process Budgeting
Step 1: List all sources of Income (after taxes) Step 2: List all Expenses (fixed/needs and discretionary) Step 3: Figure out the difference (total it up!) Step 4: Track, Trim and Target!
Indicate that there are 4 easy steps to creating a budget – highlight the steps here…the next 8 pages will detail how it works – you will be providing handouts.

12. Budgeting – A Four Step Process
Step 1: List all sources of reported income (after taxes) Income $ Other income $_________ Total Income $_________
INCOME
_______________ $___
TOTAL INCOME
$____________
Provide the full page handout with all the boxes on it. Give them examples, have them say out load theirs, then create their own and follow along with you.
“To set up a monthly budget, you need to know how much money you have available to spend every month, after you pay your taxes. This is your net household income, because it is the number that’s left after you have paid out all your deductions to the government”.

13. Budgeting – A Four Step Process
FIXED EXPENSES RENT
_______________ $___
TOTAL FIXED
$____________
Step 2: List all Expenses (there are two
common types of expenses)
Fixed Expenses are expenses that remain the same each month
Rent $
Childcare $
Transportation $______
Total Expenses $______
Part of the handout
Get them to talk about what are fixed expenses – then have them fill it out on their sheet – items THEY have as fixed expenses.

14. Budgeting – A Four Step Process
Step 2 continued
Now list your Flexible/ Discretionary Expenses – these are
the expenses that can change over time (go up or down)
Cable $
Cell Phone $
Entertainment $
Internet $
Clothes $
Groceries $_______
Total Flexible Expenses $_______
Get them to fill it out on the handout (chart at the bottom)
Here is where you write down what you think you’ll spend your money on. It easier to remember all the places your money goes if you divide your expenses into groups. You can lump them into big groups, like “shelter”, and “loans”, or you can get really specific and figure out how much you spend monthly on more particular things like clothes and transportation.
Remember, when you are looking at your discretionary spending, look at ways to “save” within that spending. For example, try bundling your phone/cable/tv/cell to get the best price.

15. Flexible/ Discretionary Expenses worksheet
Budgeting – A Four Step Process
Flexible/ Discretionary Expenses worksheet
FLEXIBLE EXPENSES
WHAT ARE YOU SPENDING
POSSIBILITIES
COULD BE
EATING OUT
LAUNDRY
TRANSPORTATION
CLOTHING
PERSONAL GROOMING
PETS
OTHER…..
TOTAL
Get them to fill it out on the handout (chart at the bottom)
This is where they can think about expenses that are potentially discretionary and what possibilities there are to cut costs. Example, eating out – only do it if you have a coupon! Laundry expenses can be cut down if you offer money to a friend who has a unit that you could borrow CHEAPER then going to the laundromat….or using a community laundromat (many churches have one on a specific day of the week. Get them to share ideas on possible ways to save money on items that they need (babysitting clubs, carpools, going to student salons for hair cuts, etc.).

16. INCOME EXPENSES ? Budgeting – A Four Step Process - =
Step 3: Figure out the Difference
AVAILABLE INCOME
Total income $___
Less Expenses $___
Available for variable expenses $___
SURPLUS/DEFICIT
$____________
INCOME
EXPENSES - ? =
After you’ve created your budget, you need to record your actual monthly income and expenses. This will help you understand the difference between the amount you plan to spend on something, and the amount you actually spend.
You may be surprised when you first start budgeting to find gaps between what you think you spend and reality! That's why making a budget is such a good idea. I shows how you really spend money!
If you are in the red….what does that mean?

17. Available for variable expenses $___ SURPLUS/DEFICIT $____________
Flexible Expenses
What are you spending
Possibilities
Could be
Food
Laundry
Transportation
Clothing
Personal Grooming
Pets
Other…..
Total
AVAILABLE INCOME
Total income $___
Less Fixed
Expenses $___
Available for variable expenses $___
SURPLUS/DEFICIT
$____________
This is the handout.
So, now you have filled out all of the information, it’s time to move to Step 3, and total it up!

18. Step 4: Track, Trim and Target!
Budgeting – A Four Step Process
Step 4: Track, Trim and Target!
 Track your income and your spending
 Trim your spending where you can
 Target where and how you use your money
After you track your spending habits for a little while, you may realize that you are spending more money than you are making! You will also see where you are spending too much money!
In some cases, it’s not hard to cut your expenses. For others, it may be very hard. For example, you do have to pay your rent and electricity bills, but you don’t need that new CD.
This is where you give out the tracking/budgeting books from Credit Canada and Consolidated.

19. What do you do if you are in trouble?
Look at your expenses and prioritize
Assess Needs vs. Wants
See if you can get the same goods at a lesser price
Make the necessary cuts
Be Realistic!
FLIPCHART EXERCISE: Before you pop up the above answers, ask for the group to give their ideas and have someone track on a flipchart…then compare answers!
After you track your spending habits for a little while, you may realize that you are spending more money than you are making! You will also see where you are spending too much money!
In some cases, it’s not hard to cut your expenses. For others, it may be very hard. For example, you do have to pay your rent and electricity bills, but you don’t need that new CD.

20. Some common money saving tips:
• Don’t go over your cell phone minutes!
• Grocery shopping with a list, and not when you’re hungry!
• Don’t give into the kids when shopping
• Negotiate for the best deal with your phone/cable provider!
• Make your lunch at home and bring it to work
• Cut your coffees from 2 to 1 a day!
Get the group to respond with their ideas before we pull up our answers.
If you pack 4 out of 5 days, and only go out for lunch once a week, you could save over $800 dollars a year. Cutting one cup of coffee out can save you over $400!
Get the group to tell you other ways that they have perhaps wasted /not spent money wisely.
Hand out the money saving tip sheet from Credit Canada and the Tips Book for Consolidated

21. “Those who fail to plan – Plan to fail”
Planning
“Those who fail to plan – Plan to fail”
Words to live by…
Ask the group what they think this means????

22. Building Your Budget
What if you could save 10% of your current income…
What you would like to do with your money?
What do you see?
Do you see a future free of financial worries?
Are there specific items you want to buy?
If so, you need to set specific goals for how to use your money.
ASK the group what would be their goals if they could save some money?
Good money management begins with setting goals. Goals give you direction, a purpose for the way you spend your money and the way you live.
Goals motivate and encourage you! They are dreams or wishes that could come true!
If you don’t set goals, you will find yourself saying “I wish I had”.
Once you get your budget under control, you may be able to save a bit each week, and that bit adds up!

23. How to be SMART when setting goals
Financial Goal Setting
How to be SMART when setting goals
SPECIFIC
MEASURABLE
ACHIEVABLE
Over the next few minutes, we are going to begin to understand what goals we have in mind for ourselves, and how to achieve them. As you plan your goals, you must be SMART. Each goal must have a set of rules that you follow in order to achieve those goals. They must be….specific / measurable / achievable / realistic / and timely.
REALISTIC
TIMELY

24. Short Term Goals Financial Goal Setting
(a goal you can achieve within a year)
GOAL Est. Cost Target Date Monthly
1. eg: A Freezer $ Year $25 2. 3.
This is a hand-out as well. Students to participate by filling it out and discussing with the trainer.

25. Intermediate Goals Financial Goal Setting
(a goal you can achieve within 5 years)
GOAL Est. Cost Target Date Monthly
1. eg: College Tuition $4, Years $166.66 2. 3.
This is a hand-out as well. Students to participate by filling it out and discussing with the trainer.

26. Long Term Goals Financial Goal Setting
(a goal you can achieve in 5 or more years)
GOAL Est. Cost Target Date Monthly
1. House
Down Payment $25k 5 Years $416.66 2. 3.
This is a hand-out as well. Students to participate by filling it out and discussing with the trainer.

27. If you combine all goals…?
Financial Goal Setting
If you combine all goals…?
Objective Est. Cost Target Date Monthly
1. eg: House
Down Payment $25k 5 Years $416.66
2. Tuition $4, Years $166.66
3. Freezer $ Year $25
Your total monthly savings would have to be $608.32! If you don’t have the
means to ” put away” this money, then you have to revaluate your goals and
make them SMART! Maybe the house can wait until the tuition is paid, or wait
10 years for the house… You’ll need to decide for yourself based on your needs.

28. Pay yourself a little each week… It can add up!
Planning Your Future..
Pay yourself a little each week…
It can add up!
Based on starting with a zero balance
Interest compounded monthly
Save Each Week
Interest Rate
10 Years
$5.00 3%
$3,032
$10.00
$6,065
$15.00
$9,097
$20.00
$12,130
Based on current interest rates that they could get.

29. You should now be able to:
What have you learned?
You should now be able to:
Complete the four steps to build your budget
2. Explain the budget planning process
3. Set SMART goals
Ask someone to re-iterate the 4 steps to build a budget
Ask someone to re-iterate what SMART stands for
Ask someone why this is so important.

30. Questions?

31. Thank you!
United Way Toronto would like to gratefully acknowledge the wonderful support of Alterna Savings Credit Union, Consolidated Credit Services of Canada, Credit Canada, JVS of Toronto, and St. Christopher’s House.
As well, we would like to thank the voluntary efforts of the Adult Learning Consultants, Tracy and Maggie!

32. PLEASE HAND IN YOUR EVALUATION SHEETS
For more information or help
Contact the FAPS worker at:
St Christopher House
Agincourt Community Services
Jane Finch Community and Family Centre
PLEASE HAND IN YOUR EVALUATION SHEETS
THANK YOU!