1. 11th grade- Budget and Savings
Financial Literacy
11th grade- Budget and Savings
“It’s not what you make, it’s what you keep.” James Henson, Sr.

2. Objectives for today
Demonstrate a method to analyze your income and expenses
How much do you really cost?
Understand the basics of a budget
Evaluate choices you can make now for a successful future

3. What is Financial Literacy?
Understanding how to manage money effectively
Acquiring knowledge and skills to make informed decisions regarding money matters
Helping individuals fulfill personal, family, social and governmental responsibilities

4. Why do I need to be financially Savvy?
People who are financially literate are more likely to achieve a better quality of life and reach their lifetime goals.
Being financially savvy can:
Help you buy something you need or want (car, computer, etc.)
Save money for emergencies
Afford college tuition
Start a business
Live comfortably in retirement
Lead to financial independence

5. Financial Literacy: Budgeting
A budget is an estimated list of your income and expenses over a given period of time.
Developing a budget helps you control your money and limit your spending.
Creating a budget plan is an important step every student can take to assess his or her financial wellness.

6. Financial Literacy: Budgeting
How much do you cost?
FUN
Movies/Entertain
$60.00
Music
$20.00
Snacks/Dining Out
$40.00
Friend's Birthdays
Vacation
$50.00
SPORTS
Registration Fee/Uniform/Equip
$75.00
Gym membership
$25.00
HEALTH & BEAUTY
Hair/ Nails
$45.00
EDUCATION
School Fees/Supplies
$15.00
Tutoring
GRAND TOTAL $
Category
Estimated Monthly Expenses
Savings Account
$50.00
Cell Phone
$110.00
CAR
Car Payment
$250.00
Car Insurance
$150.00
Gas
$100.00
SHOPPING
Clothes
Shoes

7. Financial Literacy: Budgeting
Use the steps below to help you create your first student budget plan.
Step One: Assess Your Finances
List all your sources of monthly income- job earnings, savings, parental support, gifts, internships

8. Financial Literacy: Budgeting
Step two: Determine Your Expenses
List all your monthly expenses. Consider:
Meals
Entertainment
Personal care items
Laundry
Telephone
Include money for emergencies. It is recommended to budget 10% of your income.
Examples: lost phone, damaged iPad, book obligations, etc.
Try to keep at least one month of total expenses in savings.
Car expenses, gas, insurance
Clothes
Technology
College classes
School supplies

9. Financial Literacy: Budgeting
Step three: Total your income and expenses.
If your expenses are greater than your income, you need to find ways to increase your income stream or reduce your spending.
Think about the little things you can cut back on to save dollars here and there.
Consider needs verses wants.
Examples:
Rent an on-demand movie or use Netflix instead of going to the movie theater
Skip the Starbucks and make a coffee at home
Borrow an outfit for a formal event
Walk instead of driving your car

10. Financial Literacy: Budgeting Step four: Set your financial goals
Start by making a list of your short, medium, and long-term goals and set monetary figures that will help you achieve them:
Short-term goals:
Trying a new restaurant
Buying a new game
Taking a weekend ski trip
Medium-term goals:
Summer trip with your friends
Studying abroad next year,
Paying for AP exams
Long-term goals:
Paying off your student loans
Investing in the stock market
Saving for a down payment for a home
Starting your own business

11. Financial Literacy: Budgeting
Step five: Track your budget over time
Compare your actual income and expenses with your budget to make sure you’re on target to meet your goals.
You’ll need to monitor your budget periodically in order to make changes when necessary.
Be prepared for the unexpected. (e.g., car repairs, broken cell phone)

12. Financial Literacy: Budgeting
Start Saving Early
Savings Account
Roth IRA’s
Mutual Funds
Stocks/ Bonds
Pay yourself first
Let your money work for you
Pay your expenses
Read biographies of financially successful people

13. Financial Literacy: Budgeting
Compound Interest-Save and Watch it Grow
Thanks to compound interest, small regular savings can add up over time. With compound interest, it is not just your money that earns interest – your interest earns interest as well – creating a snowball effect.

14. Cost of Waiting

15. Financial Literacy: Budgeting
Budgeting your money is an important part of financial literacy.
The bottom line is that you are in control of your financial health.
A budget will keep you on track and help you realize your goals.

16. What can I do now to become financially literate?
1. Get a good education.
2. Work smart.
3. Learn money management skills.
4. Living below your means.
5. Save early and often.
6. Gather information before making decisions.
7. Have a budget plan.
8. Ask questions and attend financial seminars
Financial Fitness For Life Council For Economic Education

17. What can I do now to become financially literate?
For more information go to:
This information brought to you by the Severna Park High School Business Advisory Board