1. Personal Finance Bishop Kearney High School Dr. Steven M. Hays

2. What is a budget? A system that allows you to meet your personal goals System of saving Wise spending Allows individuals to make wise and rewarding personal economic decisions

3. Live within income Achieve financial goals Buy wisely Avoid credit problems Plan for financial emergencies Develop good money management skills What is the key? Having a written budget

4. Four main steps Set financial goals Plan budget categories Maintain financial records Evaluate your budget

5. First step for any financial action Write down short term and long term goals Points to where you would like to be financially Budget accordingly How to spend and save money

6. Set aside amount for savings as first part After savings, two types of living expenses considered Fixed Variable Fixed expenses Costs that occur on regular basis Same amount every time rent, mortgage, car payment, life insurance premium Variable expenses Differ each month food, clothing, utilities

7. Savings Savings accounts, stocks, bonds, mutual funds, other investments Food At home and eating out Clothing Clothes, shoes, dry cleaning, repairs, alterations Household Rent, mortgage, property taxes, insurance, utilities, furnishings, household supplies, painting, repairs

8. Transportation Auto payments, insurance, gas, maintenance, repairs, public transportation Health and Personal Care Medical and dental expenses, insurance, personal care costs Recreation and Education Books, theater and concert tickets, vacations, hobbies, club dues, school expenses Gifts and Contributions Charities, personal gifts

9. Record income and expenses Find out if plan is working References to prepare income and expense summary? Check book Receipts Payroll statements

10. What is a budget variance? Any differences between budgeted amounts and actual spending Complete a category by category comparison Allows you to determine if changes are needed

11. Characteristics Must be realistic Should be flexible Should be evaluated regularly Must be planned Clearly communicated Simple format