1. Personal Budgeting

2. Objectives
Identify the components of a personal budget and strategies for staying within one’s budget
Describe the purpose for setting financial goals
Develop short-, mid-, and long-term financial goals
Evaluate the importance of financial planning

3. Key Vocabulary Balance Sheet Budget Deficit Discretionary Expenses
Discretionary Income
Financial Health
Financial Planner
Fixed Expense
Income
Inflows
Insolvency
Outflows
SMART goal
SMART strategy
Surplus
Take-home pay
Variable Expense

4. Needs vs. Wants Divide the words into needs vs. wants
Which items are the most difficult to classify? Why?
Can an individual’s financial situation change her views of what is considered a need and what is considered a want? Explain.
Would you classify most of your own purchases as needs or wants? Explain

5. Needs vs. Wants
Do you purchase a new pair of basic shoes or the new Jordan’s for $150?
Wants change into needs
Want a car turns into need a car for work to provide for family/ self
Vary based on financial situation, family, religious, or cultural values

6. Simulation
Imagine that you are a single father running a computer repair business from your home. Refer back to your list of 25 words. How would your classifications of your needs and wants change based upon your life circumstances?

7. Financial Goals
Responsible money management can help you achieve your goals
Who would like to someday purchase a new car?
Who would like a new pair of shoes?
Who would like to purchase a computer?

8. Financial Goals
Refers to something, an item or product, that they want to buy or even a state of financial well-being that they hope to achieve.
List three financial goals that you have for the future.

9. Financial Goals Short-term- within 1 year Mid-term- 1-3 years
Long-term- More than three years
New shoes-short term
Buy special jewelry for you Mom’s 50th anniversary- mid-term
College tuition- long term
Retirement- long term

10. Financial Goals Offers inspiration and motivation
Make goals specific and attainable
Flexible and realistic for your life

11. Financial Goals Download: Reading- SMART Financial Goals
What does the acronym SMART stand for? S M A R T

12. Financial Goals Share one of your goals that you wrote from before
Take turns evaluating each other’s goal against the SMART criteria. Verbally discuss your goals and offer advice on specific changes in language that should be made
Compare your SMART goal with your original goal. In what ways will your new SMART goal be easier to attain?

13. Writing SMART goals Download: Worksheet- Writing SMART Goals
Write your original goals out before SMART was introduced
Transform all three goals to SMART goals
Decide whether your goals are short, mid or long-term

14. Writing SMART goals
Long-term important to start early because usually their the most expensive
Organize income, expenses, and savings to achieve your goal

15. Introduction to Personal Budgeting
Download: Anticipation Guide- Budgeting
Contemplate the four statements, agree or disagree why?
Download: Reading- Budgeting
Review section headings and highlighted terms
Does reading change any of your answers?

16. Budgeting
Develop your taxonomies further but with terms about budgeting
3 minutes by yourself
3 minutes at your table
4 minutes walking around the room

17. Budgeting What information is needed to create a budget?
Accurate records of money in and money out
Keep financial documents
Receipts, paycheck stubs, tax forms, etc

18. Budget Analysis Scenario cards passed out
Carefully read through the scenario
Underline sources of income
Circle all expenses
Download: Worksheet- Monthly Budget Example
You will not be using all of then columns and rows
Fill in the information specific to your scenario

19. Budget Analysis
What other financial information would have been helpful to complete the budget outline?
What seemed to stand out in your scenario?
Download: Directions- Budget Analysis Summary
How does the example reflect the specific requirements in the directions?

20. Budget Analysis Pair up and share budget analysis
Download: Worksheet- Monthly Budget Example
Of the two scenarios, which financial situation would you most like to see yourself in? Why?
List one improvement that you would make for each financial situation

21. Budget Analysis
What are the most important principles of budgeting you learned that will help you to be successful in life? Explain your answers.

22. Enrichment
Give students the opportunity and experience to create a real budget. During the first class period, instruct students to track their spending for at least the next week and preferably longer. Students must be diligent and should track even the smallest of purchases. At the end of the time period, have students classify everything they purchased as a need or a want and create a personal budget based off of their findings.

23. Enrichment
Instruct students to research the career of a budget analyst, focusing on such aspects as job requirements and certifications, work environment, earnings, outlook, and companies that employ budget analysts. Students should present their findings to the class.

24. Cross-Curricular Integration
Social Studies: Compare and contrast different patterns of savings among various countries. Explain the variations.