1. Budgeting and Money Management Purdue Employees Federal Credit Union

2. Topics of Discussion What is a budget? What is a budget? How budgeting plays a role in a financial plan How budgeting plays a role in a financial plan Creating a budget Creating a budget Tracking your expenses Tracking your expenses Where to go for help? Where to go for help? Holiday Spending Tips Holiday Spending Tips

3. What is a Budget? A short term financial forecast. A short term financial forecast. A tool used to monitor, control expenditures and purchases. A tool used to monitor, control expenditures and purchases. A comparison of actual spending to planned spending and actual income to estimated income. A comparison of actual spending to planned spending and actual income to estimated income.

4. How Budgeting Plays a Role in a Financial Plan What is a financial plan? What is a financial plan? A financial plan consists of a number of financial goals. Short term, intermediate, and long term. A financial plan consists of a number of financial goals. Short term, intermediate, and long term. A proper budget will help to meet the desired financial goals if followed. A proper budget will help to meet the desired financial goals if followed.

5. Create a Budget  First start with all your sources of income  The next step is to walk through all your monthly expenses including:  Utility bills  Insurance premiums  Gas money  Childcare  Recreational expenses  Food and laundry costs  Make a list of all your loans and credit cards with outstanding balances and the monthly payments

6. Budget Analysis The Results The Results A Surplus: Are you seeing the surplus in your account at the end of the month? A Surplus: Are you seeing the surplus in your account at the end of the month? A Deficit: We need to evaluate ways to cut costs. A Deficit: We need to evaluate ways to cut costs.

7. n Evaluate your expenses u What are your necessary expenses? Which items are frivolous expenses? u Re-evaluate your goals. Are they realistic and obtainable? Budget Analysis

8. Tracking Expenses Take a month and document every purchase. (Candy bars, soda’s, daily paper from the gas station) Take a month and document every purchase. (Candy bars, soda’s, daily paper from the gas station) Save all receipts and carry a notepad with you to jot down purchases. Save all receipts and carry a notepad with you to jot down purchases. Set up a spreadsheet and update daily. Set up a spreadsheet and update daily. Break expenses into categories. Break expenses into categories.

9. Where to go for help? PEFCU PEFCU We have a full time Credit Counselor available to help. Joe Redmon (765) 497-8822 We have a full time Credit Counselor available to help. Joe Redmon (765) 497-8822 PEFCU also has Members Financial Services to help with investments and financial planning. (765) 497-8846 PEFCU also has Members Financial Services to help with investments and financial planning. (765) 497-8846

10. Where to go for help? Community Help Community Help Family Services Family Services Lafayette Neighborhood Housing Lafayette Neighborhood Housing Area IV Agency Area IV Agency

11. Holiday Spending Tips Shop with a plan Shop with a plan Shop early Shop early Set your limits Set your limits Categorize spending Categorize spending Gifts Gifts Food Food Gift wrap/accessories Gift wrap/accessories Travel Travel

12. Holiday Spending Tips Separate shopping from buying Separate shopping from buying First trip should be to research First trip should be to research Last trips should be to purchase Last trips should be to purchase Shop prices NOT sales Shop prices NOT sales Beware of sales pitches Beware of sales pitches Be an educated consumer Be an educated consumer Not all “sales” are good deals Not all “sales” are good deals

13. Holiday Spending Tips Cash vs. Credit Cash vs. Credit According to research: shoppers spend an average of $100 to $500 more than planned when using credit cards According to research: shoppers spend an average of $100 to $500 more than planned when using credit cards Online shopping Online shopping Avoid in store temptations Avoid in store temptations Reduce time Reduce time Be smart and safe!! Be smart and safe!!

14. Holiday Spending Tips Start your own tradition Start your own tradition Buy gift certificates Buy gift certificates Make your own gifts Make your own gifts Draw names or do a grab bag Draw names or do a grab bag

15. Questions?