1. How will you use your money?
Budgeting
How will you use your money?

2. Choose Financial Goals
A budget is a plan for dividing up your income among spending and saving options.
Short-Term Goals are things you hope to achieve within the next year or two.
Example – you might want to visit a friend who moved away last summer.
Long-Tem Goals are things you hope to achieve in more than a year or two.
Example – your career choice.

3. Prioritizing Your Goals
Short term goals lead to long term goals
You need a clear understanding of your goals
Rank them from most important to least important.

4. Your Goals Affect Others
How can your goals affect your family?
How can your goals affect your community?

5. Questions What is a budget?
What is the difference between short-term goals and long-term goals?
How can short-term goals lead to achieving long term goals?
Why should you prioritize your goals?

6. Track Income and Expenses
Keep Financial Records
Track your income
Track your expenses
Establish a Filing System
Effective Record Keeping
Receipts
Checks

7. Fixed and Flexible Expenses
Fixed expenses are amounts you have already committed to spend.
You have no choice
Car payment
Monthly rent
Car insurance
Flexible Expenses are amounts that you can choose to spend or not to spend.
Clothes
Luxury Goods
Goods that have a special qualities that make them more expensive than alternative goods.

8. Questions
What is the purpose of keeping financial records?
What income records should you keep?
What spending records should you keep?
Describe how to set up an effective filing system?
What is the difference between fixed and flexible expenses?

9. Your Budget Worksheet
A budget worksheet is a planning document on which you record your expected and actual income and spending over a short time, usually one month.
Step 1: Create a Worksheet

10. Create Your Budget Worksheet
Step 2: Estimate Your Income
Estimate Uneven Income
Bonus Month
Birthdays
Be sure income is real
Step 3: Estimate your Savings and Expenses
Plan for Uneven Expenses
Plan your savings

11. Create Your Budget Worksheet
Step 4: Record Your Actual Income and Expenses
Step 5: Calculate the Differences

12. Budget Pitfalls
Some people get too specific, the level of detail becomes too much trouble.
Some people don’t predict the correct amount of their flexible expenses.
Some people lump too many expenses under miscellaneous.
Give up because of Too much time. One hour a week.

13. Create Your Budget for the Year
Evaluate Your Budget Worksheet
Adjust Your Spending
Make Several Plans
Relate Your Goals to Your Budget
Adjust to Changing Goals

14. Family Budget
Planning Together
Compromising

15. Questions
Why must your budget balance
What can you do to adjust your budget if it doesn't balance?
Why should you review your budget at least once a year?
What are the benefits of planning a family budget?

16. Questions
What is the value of compromising as your plan with your family?
How can budget worksheets help you create a budget for the year?
How should you decide what uneven income flows to include in your budget?

17. Questions What is the purpose of a budget?
How does preparing a budget worksheet involve trade offs?
What are the steps in preparing a budget worksheet?
What would you use to prepare a worksheet?
What does the over or under column on the worksheet tell us?