1. Unit 12 Budgeting © iStockphotos/Thinkstock

2.  Income  Expenses Budget Components Fixed Flexible Discretionary ©Hemera/Thinkstock

3.  Regular payments Fixed Expenses Rent House payment Car payment Insurance premiums payment due ©Ingram Publishing/Thinkstock

4.  Regular expenses that you have some control over Flexible Expenses Utility Clothing ©iStockphoto/Thinkstock Groceries ©iComstock/Thinkstock

5.  Spending within your control Discretionary Expenses Entertainment Music downloads Magazines Cosmetics Impulse buying ©Hemera/Thinkstock

6.  Evaluate income.  Evaluate expenses.  Enter income and expenses into blank budget sheet.  Analyze whether income will cover the expenses outlined in your budget. Steps for Creating a Budget

7.  Spending Diary  Monthly Payment Calendar  Evaluation of Spending Budgeting Tools

8.  Ease of tracking due dates of payments  Avoiding late payments  Scheduling payments to coincide with income  Knowing what can be spent on discretionary expenses  Knowing how much you have left for the month at any time Benefits of Using a Calendar

9.  Allows individuals to plan ahead for expenses  Reduces money-related anxiety  Helps to avoid overspending  Creates a savings plan  Helps to avoid late fees and additional interest charges associated with late payments Advantages of Creating a Budget

10.  Adjust your flexible expenses.  Plan your discretionary expenses.  Do not carry cash—it’s too easy to spend.  Pay off debt as quickly as possible.  Control your use of credit cards.  Pay bills on time.  Put your change in a jar.  Open a savings account. Ways to Cut Expenses and Save

11. Always Pay Yourself First! Final Tip

12. Based on overhead slides developed by the Utah Bankers Association. A copy of those slides is available at http://www.uen.org/Lessonplan/preview.cgi?LPid=28945http://www.uen.org/Lessonplan/preview.cgi?LPid=28945.