1. Budgeting 101 Career Life Education 10

2. ICE BREAKER! What is your earliest money memory?
These early experiences can shape your money behaviors as an adult.

3. Show of hands! How many have created a budget in the past?

4. Show of hands! How many of you have STUCK to your budget?

5. The Importance of a Budget: Looking to Your Future
Nearly 70% of consumers live paycheck to paycheck
68% of Americans could not cover a $5,000 emergency without having to go into debt for it
55% of Americans “always” or “sometimes” worry about their money
Nearly 30% of Americans spent more time watching reality TV last month than they spent planning and preparing for retirement over the past 10 years
Habits you form now will affect the rest of your life

6. As You Begin the Budget Journey
Take responsibility for your money:
Spend money wisely
You are accountable for your choices
Get help
Behavior matters—become mindful:
Practice financial self-awareness
Observe thoughts, feelings, and behavior
Watch yourself and others and be honest
Beware the 24-hour marketplace

7. Budgeting Rewards
Ability to maintain or improve your standard of living
Controlled spending allows you to live well today and tomorrow
Accumulate wealth—Remember, whatever your income, you can spend it or save it
Hope of avoiding much of the havoc that money problems wreak on your personal life—Conflict over money is the leading cause of divorce

8. What Are Your Biggest Obstacle to Sticking to a Budget?
Little things adding up
Impulse purchases (coffee, clothes)
Not knowing how to start a budget
Having trouble creating a budget that adequately reflects all of my expenses, debts, etc.
Monitoring spending/tracking expenditures
Unexpected expenses—friends want to eat out, etc.
Not having a clear food budget
Feeling overconfident in my current spending habits
Not actually taking the time to make one
Problem being able to say “no” to things that don’t fit my budget

9. Budgeting 101 1 2 3 4 Develop a plan Keep it simple & realistic!
Make a list of all sources of income
Make a list of all anticipated expenses 3
Identify shortfalls
Do you have a Plan B for emergencies? 4
Implement plan!
Revisit and revise quarterly

10. Budgeting in Action
A 1st year MD student will have a ten-month $24,897 cost of living allowance built into the financial aid budget:
$24,897/12=~$2075 per month
*Per federal regulations, we are not allowed to provide you with financial aid for the months you are not enrolled as a student, so you will need to ration your funds to make it last the full 12 mo.
*This is the gross amount disbursed to the student, not including the origination fees
This student would use $2075 as the amount coming in each month, and subtract all obligations from this amount.
FINANCIAL AID EXPERT TIP: When you receive your loan disbursement at the beginning of the semester, put the entire amount into your savings account. Then, each month, pull only that month’s worth of funds into your checking account.

11. Based on recent survey results:
Expense
Average Spent Per Month
Rent (with avg. of 1-2 roommates)
$1,000
Utilities
$125
Laundry/Dry Cleaning
$16
Groceries/Eating Out
$342
Clothing
$40
Toiletries/Personal Care
$33
Monthly Charlie Card
$63
Entertainment
$60
Other
$44
Total
$1723
If the student in the example stuck to this budget, s/he would have ~$352 in excess each month.
FA EXPERT TIP: Return unneeded funds within 120 days of disbursement and there will be no origination fees or interest accrued on that amount!

12. Types of Budget Plans Traditional—example to follow Zero-based
Every dollar is given a purpose
Every category is evaluated
Tends to be a bit more work
DsBudget is a useful website for this type
Envelope method
You can use “spreadsheet envelopes” instead of cash, or set up separate bank accounts for groups of expenses
50/30/20: Essentials/Goals/Wants
Event-based
Vacation, wedding, holiday spending

13. Traditional Budget Plan

14. Budgeting Tools
Books
Websites
Videos
Financial planners
Apps

15. Don’t Have Too Much Month Left at the End of Your Money!
Clip coupons to save money on groceries
Carpool or use public transportation
Buy clothes at end-of-season sales
Buy generic brands rather than name brands products
Buy non-perishable items in bulk
Cut out the daily latte or frequent dining out
The 30 Minute Rule: If you see something you “have to have,” wait 30 minutes, then if you still can’t live without it—make the purchase.

16. Student Discounts
Several student discounts available both nationwide and locally
Amazon Prime for Students
Amazon Subscribe & Save
Apple Music
On and On and On !

17. Student Discounts: Clothing It never hurts to ask!
LOFT: 15% off
Ann Taylor: 20% off
Banana Republic: 15% off
J. Crew: 15% off regular-priced items
The Limited: 15% off
The North Face: 10% off
Marathon Sports: 10% off
But remember, just because something is discounted, does not automatically mean it is budget friendly!

18. Every good budget needs to look at three things:
Income (How much money you bring in per moth)
Expenses (How much money you spend)
Potential Savings (For a rainy day, etc.)

19. Let’s help each other! What tricks do you use to save money?