1. Budgeting
Grade 9

2. Budgeting Game Let’s break into groups of 3-4
Each group needs one game sheet.
We will start the game after reviewing some budgeting information.

3. Budgeting Tips
Wants vs. Needs — A need is a necessity, such as housing or food. A want can be anything and may not be a necessity. **Be careful when spending on wants.
Pay Yourself First — After budgeting for necessities and before spending anything for wants, always tuck away some money from each paycheck for emergencies into a rainy day savings account.
Before Charging — Ask yourself: 1) Do I really need it? and 2) Will I still have this 5 years from now? If the answers are No, then wait until you can pay cash.
Rule of Percentages — A good rule of thumb for budgeting your salary is: 70% pay current bills, 20% save for future purchases, 10% invest for long term.

4. Budgeting Tips - continued
Money Tracking —We often spend money without thinking about it. Keep track of all your expenditures (cash, checks, debit cards, ATM withdrawals and credit cards), even the smallest ones. Record them every time in a notebook or register. Review them regularly to make yourself aware of where your money goes.
Fixed, Flexible or Luxury? – Categorize the expenses in your budget. Is it fixed, such as rent or a car payment? Is it flexible such as groceries, gas or long distance use? Or is it luxury, such as entertainment or going out to eat?
Rule of 72 (to double your money) — If you know the interest rate you can get, divide 72 by the known interest rate and it will give you how many years it will take to double your money. If you know how many years you have, divide 72 by the number of years and it will tell you what interest rate you must have to double your money. Examples: If interest rate is 6%. 72 ÷ 6 = 12 years. If time is 10 years. 72 ÷ 10 = 7.2% interest rate needed.

5. Budgeting Tips - continued
All of the budgeting tips are important. If you only remember one, remember MONEY TRACKING!!!!
It is impossible to keep a budget if you do not know where your money is being spent. There are apps that will track your money for you, if you like. You can also track your spending through online banking. Paper and pencil are always an option for those who want to keep their information offline.

6. Average Expenditure Breakdown
% of Total Income
Category 30
Housing 18
Transportation 16
Food 8
Charity/Miscellaneous 5
Clothing
Medical
Recreation
Utilities 4
Savings
Other Debts

7. Let’s Budget In your “Families”…
You must pay your bills with a 20 – square salary
Remember – There are differences in wants vs. needs. You must meet your needs before selecting your wants.
Basic needs categories include: food, clothing, shelter, and transportation (gas, oil, maintenance, insurance, etc). They are marked with gold stars and must be chosen.
Expenses are either fixed or variable. Ex: Rent is fixed. Groceries are variable.
All budgets should include both long & short range goals.

8. Directions
Each “family” must mark 20 squares, including one in each gold star category.
Use any leftover marks to select wants.
We’ll discuss your budgets in five minutes.

9. UH OH! Budget cuts!
You’re monthly income has been reduced to 13 squares.
Possible causes: company layoffs, salary cuts, disabled, etc
You need to take off 7 squares.
What things did you have to give up due to the budget cuts?
How would that make you feel?

10. Balancing Budget If money is tight…
How can you make extra money? *Wait for student responses.
Babysitting, odd jobs, part-time work, etc
How can you save more money? *Wait for student responses
Consignment shops, flea markets, eating in, couponing, etc

11. Preparation is Key! Always prepare for the unexpected!
Never over extend your finances.
Always Pay Yourself First (save)
Keep an Emergency Fund

12. Career Thoughts
Will your current career plan give you the lifestyle you need?
Will it give you the lifestyle you want?
Are you preparing yourself academically for your future career success?