1. Financial plans and budgeting AR FACS framework 7.6

2. goals discussion Clustering: Personal goals and financial goals What can you do to work towards your goals? What resources do you need to achieve your goals? (ie. abilities, skills, time, education, money, etc.)

3. SMART goal guidelines SMART goals SHOULD: Specific “I want to save for a down payment to buy a house.” Measurable “I want to save $4800 for a down payment to buy a house.” Attainable “I want to save $4800 by saving $200 a month for a down payment to buy a house.” Realistic Is someone actually capable of doing this? Time bound “I want to save $4800 by saving $200 a month for the next 2 years for a down payment to buy a house.”

4. money discussions Where does your money come from that you use to achieve your goals? Are you financially dependent or independent? Using the record you kept during the last week, what did you spend the most money on? Need? Want? What do you think of when you hear the word “budget”?

5. budget Budget – plan for spending and saving Reasons to budget –To determine how much money you have to spend –To decide how you want to spend your money –To determine how to spend money in the future –To learn to live on less than available income –To stay out of financial trouble –To be in control –To create a savings plan

6. the budgeting process phase 1: Assess your personal and financial situation (needs, values, life situation). phase 2: Set personal and financial goals. phase 3: Create a budget for fixed and variable expenses based on projected income. phase 4: Monitor current spending (saving, investing) patterns. phase 5: Compare your budget to what you have actually spent. phase 6: Review financial progress and revise budgeted amounts.

7. setting up and maintaining a budget incomebudgetactualdifference Job #1$$$ $$$ Other$$$ total monthly income $$$ expensesbudgetactualdifference fixed regular expenses Rent$$$ Car insurance$$$ Car payment$$$ Credit card$$$ fixed irregular expenses Savings$$$ Food$$$ Utilities$$$

8. setting up and maintaining a budget (continued) expensesbudgetactualdifference transportation Bus fare$$$ Gas and oil$$$ Parking and tolls$$$ Repairs$$$ other Medical expenses$$$ Clothing$$$ Entertainment$$$ Household items$$$ Personal items$$$ Tuition$$$ School expenses$$$ total monthly expenses $$$