1. September 9- BUDGET UNIT: SEPTEMBER 9

2. How do you budget your expenses? If you do not budget, explain why….. BELLWORK: 9/9

3. http://www.youtube.com/watch?v=mZbV0zeFhyY BILL COSBY- BUDGETING 101

4. You will soon be leaving home. You will be going to college or simply starting your own household. Either way – the real world and the costs to live independently of your parents is your next step. STEPS: Setting up a budget to manage your finances is the first step Living by your budget is the second Planning for emergencies and the “what if factors” is the third SUPPORTING YOURSELF

5. To set up a monthly budget, you need to determine how much take-home pay you get on a regular basis. If you get paid once per month, this one is easy - it's the amount of your salary that you 'take home'. If not, you'll need to do some math. If you don't get paid by the month, use the following chart:  For weekly pay, multiply by 4.333  For every two weeks' pay, multiply by 2.167  For twice-a-month pay, multiply by 2  For irregular monthly income, divide by 12 STEP 1: ADD UP YOUR INCOME

6. Your budget starts with creating spending categories. How much you budget for various items will depend on you. Create budget categories, a detailed record of your spending will help you determine how much to budget in those categories. Since saving is vital to long-term financial security, money advisors suggest that savings be budgeted as a fixed expense. Suggest you start an IRA for you retirement right out of high school. Write down what you think you'll be spending in the category areas. STEP 2: ESTIMATE YOUR EXPENSES

7. Keeping records of your actual income and expenses is critical in the budget process. This information helps you to understand any "budget variances" - the difference between the amount you budgeted and what you actually spent for the month, or time period. STEP 3: FIGURE OUT THE DIFFERENCE

8. Have changes in your personal or financial situation created a need to change certain goals? Have new goals with a high priority surfaced? Addressing these issues while creating an effective saving method will help ensure that you meet your financial goals. Finally, when creating and implementing a spending plan, remember that an effective budget should be WELL-PLANNED... REALISTIC... FLEXIBLE... and CLEARLY COMMUNICATED to all household members. Note! If your budget is realistic and if you use it to guide your expenses, you'll be better prepared for your emergencies - other unexpected costs. You'll also be better prepared for a financially secure future.

9. As you track your monthly expenses, you may need to trim expenses. Some expenses are more easily trimmed. For example, you need to make rent payments and buy groceries, but you may be able to go without seeing that new movie. Cutting back is usually a better place to start than cutting out; however, it may be a signal that you need to revise your budget and financial goals. What should you cut first when a budget shortage occurs? This question doesn't have easy answers, and the answers will vary for different household situations. The most common overspending areas are entertainment and food, especially away-from-home meals. Purchasing less expensive brands, buying quality used products. STEP 4: TRACK, TRIM, AND TARGET

10. http://www.econedlink.org/interactives/index.php?iid=232 BUDGETING 101

11. For the Next week, we will be looking at Paychecks, what to do with them and how to use them. This information will be relevant and useful towards your future aspirations and goals. INVESTING IN MY FUTURE