1. Budgets

2. What is a budget??? A plan for spending and saving your money.

3. Step I: Determine Income Income - Money you take in and have available to spend – The money coming in! Sources of Income include: Allowance Gifts – Birthday money Job – Non-taxable employment Taxable employment

4. Step 2: Record Expenses Expenses - Items or services that you spend your money on. Fixed Expenses – Expenses that are the same each time. Examples: Flexible Expenses – Expenses that are not the same each time. Examples: *Pay Yourself First – PYF: Saving money each month Utilities/Bills: Some utilities are fixed expenses (cable bill) while others are flexible (power bill, phone bill) WHY?????

5. Step 3: Create A Plan Consider your goals Remember that your fixed expenses must be covered first! Step 4: Stick to your plan!

6. Income – Money coming in: – Work______________ – Gifts/Allowance______________ Total Income______________ Expenses – Money going out: Fixed:Flexible: Savings/PYF____Gas____ Car Payment____Food____ Auto Insurance____Clothing____ Cable Bill____Entertainment ____ Rent____Power Bill ____ Phone Bill____ Total Fixed____ Total Flexible ____ Total Expenses (Fixed + Flexible) _____________ Money Left Over? (Income – Expenses)_____________