1. Avoiding
Unpleasant
Surprises

2. Unexpected expenses are a normal part of life
Lesson1: Plan for Unexpected and Occasional Expenses
Objective: Determine how much money to save for unexpected and occasional expenses
Unexpected expenses are a normal part of life.
Handling emergencies and other unexpected expenses is a big problem for many families. As you start to get ahead, something happens and you end up further behind. While you’d need a crystal ball to know exactly what will happen, you can be sure that sooner or later, something will happen. When you accept that unexpected expenses and emergencies are part of life, you can begin to prepare yourself for whatever might come your way.
Activity: Talk with family about recent unexpected expenses. How did they get money to meet these expense needs?

3. Set aside money each month for occasional expenses
2. Save each month for occasional expenses.
Some unexpected expenses are not so unexpected. Instead of allowing an annual insurance premium to become an emergency, set aside money each month that so that you’ll have enough to pay when it’s due. The more time you have between now and the due date, the easier it is to save what you need.
Activity: Identify occasional expenses which must be paid in the next three, six or twelve months. Determine how much money to set aside for these expenses. You may wish to use the worksheet, “My Occasional Expenses”. If you don’t have this worksheet, contact Michael Rupured

4. Look for ways to reduce the cost of occasional expenses
Talk with your family about reducing occasional expenses. Consider making birthday and holiday gifts rather than buying them. Shop for lower cost insurance. Learn to do simple repairs and maintenance for your home and/or auto yourself instead of paying someone to do it for you. Every little bit you reduce an expense is that much less you need to save.
Activity: Assist the family in revising savings needed to reflect cost reductions. Add needed savings to the family financial calculator, juggling cards, “to do” list, or budget box as appropriate.

5. Prepare for unexpected expenses with an Emergency Savings Fund
Without savings to fall back on, unexpected expenses eat up money meant for other expenses. It takes time to build up enough savings to cover large unexpected expenses. Even so, every dollar you save helps you in the event of an emergency. More important, you feel better knowing you’ve done all you can to prepare for any surprises.
Activity: Determine how much money to set aside for unexpected expenses. Talk about a safe place to keep the money saved.

6. What is an emergency? Lesson2: Using Savings Wisely
Objective: To develop skills in managing an emergency savings fund.
What is an emergency?
Each member of the household probably has different ideas about what is and is not an emergency. One person’s emergency may not seem so important to someone else. Before dipping in you your emergency savings fund, everyone should agree about what an emergency is.
Activity: Talk with the family about what might and might not be an considered an emergency

7. Agree on rules for using your emergency savings fund
During a crisis, it’s easy for emotions to take over, and for discussions about money to end in conflict. Before an emergency comes up, talk with your family about when it would be okay to use your savings. You might decide that to use the savings fund:
The emergency affects everyone in the household
All other options have failed
All family members agree with the decision to use savings
Have all family members read and sign any rules you make. This will help your savings grow. Without rules, you might spend the money your saved before you have a chance to add to it.
Activity: Establish guidelines for when you may use your emergency savings fund

8. An ounce of prevention is worth a pound of cure.
Saving for unexpected expenses and emergencies is only part of the picture. Preventing accidents, illness, and other events which might lead to unexpected expenses can save you plenty. Keep yourself and your family healthy. Rest, exercise and eat a well-balances diet. Proper care and maintenance of your belongings slows wear and tear and can add years to their usefulness.
Activity: Discuss with participants things to do that may prevent or reduce unexpected expenses.

9. Savings pays off Lesson3: Picking up the Savings Habit
Objective: To encourage the family to develop a habit of savings
Savings pays off!
Saving money for emergencies and unexpected expenses pays off. Deposit your emergency fund in a savings account and it earns interest. The more you save, the more interest you receive, That’s more money for your family!
Activity: Discuss with family how an emergency savings fund might have helped with a recent unexpected expense

10. Start small and pay yourself FIRST
It’s hard to think about saving when every penny is needed for other expenses. Think of saving as paying yourself first. Start small. Even a dollar or two a week can add up. Once you decide how much to save, set this money aside before spending on anything else.
Activity: Using the estimates for occasional and unexpected expenses prepared previously, determine how much to save from the next income received.

11. Add to your savings when you can
Keep the change
Think before you spend
Keep making payments
Save windfalls
Earn extra income
3. Add to your savings when you can.
Once you start saving, you won’t want to stop. Savings is your umbrella for a rainy day. The bigger your umbrella, the easier it is to handle unexpected expenses. In addition to regular savings, add to your emergency savings fund whenever you can.
Keep the change – Drop loose change from your purse, pocket or desk into a piggy bank. Count this money monthly and add it to your savings fund
Think before you spend – Avoid impulse buying. Think about each purchase before you spend money. Be sure you really need the item and shop for the best buy.
Keep making payments – After paying off a loan or other regular payment, continue making the payments into your savings account. If you can’t afford to save the whole payment, try to save at least half.
Save windfalls – Unexpected income, like a cash gift or refund, is a windfall. Don’t spend it on something you don’t really need. Save at least half for a rainy day
Earn extra income – Rake leaves, shovel snow or mow lawns. Babysit, or take in laundry, ironing or mending. Consider a temporary or part-time job, or wok extra hours at your current job. Make it a point to save as much as possible of any extra income you receive.
Activity: Ask participants how they might add to their savings using these strategies