2.  1. what is a budget?  2. do any of you have a WRITTEN budget?  3. Why are budgets important to have?

3.  1. Why are Theo’s parents worried about his grades?  2. What does DR. Huxtable know that his son does not know?  How much money does the “regular” person in this video clip make?  What would this be as an annul salary? (1985) ($25,000 in 2013)  On what and how much did Theo say he would spend his “regular” person’s salary?  How much money was left over after all the bills were paid?  How realistic was Theo being in the clip?  How many of you would be willing to live on “bologna and cereal”?  How many of you occasionally eat fast food meals? How much does a meal cost? How much would a month of those meals cost?  Do you think Theo’s “Regular” person can live a rewarding lifestyle on this budget? Why/why not?

4.  1.) To provide for and protect yourself and your family.  2.) To plan for the future.  3.) To reach your goals.

5. A study was done of Harvard alumni 10 years after they had graduated. The survey found that:  83% had NO specific personal or business goals.  14% had specific goals but they were NOT written down.  3% had specific goals that were written down. Goal Setting Survey of Harvard Graduates

6. PAYOFF:  Those with goals not written down earned 3 times as much as those with no goals.  Those who had written their goals down earned  10 times as much as those with no goals.

7.  No Goals  Ignorance  Debt  Poor investments  Inflation  Taxes  Procrastination – the most common! Roadblocks to financial success

8.  1.) Short Term Goals (1-2 years) Emergency fund  2.) Medium Term Goals (5 years or less) Buy a home  3.) Long Term Goals ( 5 years and longer) Children’s Education Retirement

9.  1.) Decide what you want to do with your money.  2.) Make Your Plan and stick with it!

10.  What do I want out of life…  1. In 8-10 years, what goals will I want to have accomplished and how do I want to be living?  2. What will I have to do to accomplish these goals?  3. What roadblocks can I see possibly having to gaining these goals?  How might I overcome these roadblocks?  How can a budget / money management help me accomplish this?

11.  1. Can you categorize you purchases in any meaningful way…  2. What were the total EXPENDITURES in each of these categories? What categories did you spend the most? / the least?  3. What were your REVENUE sources?  4. How many of these purchases gave you something permanent? (asset) How many are were used up immediately/ quickly?  Did everyone have the same answers in the class? Is that okay?

12.  1. Did your actually spending habits fair well with you goals?  How can you better align your spending to what are priorities in your life?  Are there some spending that you could NOT avoid?  Are there some spending that you will try to avoid?  How?

13.  Instead of thinking 8-10 years away, Lets fast forward your life to your senior year…(Prom, graduation, senior trip, driving, no more McAnulla’s class every other day..ahhhhhhh)  List everything you will need to spend money on in order to have a fabulous senior year….  Activity at tables… 3.2.2..3.2.3..

14.  1. Where will the income (money) for these activities / expenses come from?  2. How many think that they will be able to do all of these things with no cost to themselves? / Will you parents pay for everything?  3. What will be some of the opportunities cost your parents will have to face because of your senior expenses?  4. How could you increase your income?  5. What strategies could you use to reduce your spending?  6. How will a budget keep you on track for your goals?

15.  You have just been hired for the fabulous career that you have been working for!!!!!  Your starting salary is……25,000  -- $2084 a month  __ $480 a week…  Big money

16.  Uncle Sam gets the first bite of your pay check… bwwahahahaha  Gross pay… Net Pay… Taxes  Deductions and Benefits  Required and optional deductions  Tax Tables…  The federal taxes:W2, 1040, 1040 EZ,  State/ local taxes…  Nicole’s and Jack’s tax situation…

17.  Is it better to get a tax refund or have less taxes withheld? Support your answer!!!!

18.  Now that you have a more accurate idea of how much money you actually get to take home….  A monthly budget… John and Marcia’s stories…  ASSESSMENT: Now you have to do your own monthly budget!!!!