1. Sit at the desk Get something out to write with. You will need to take notes! Answer Question on Handout

2. Answer the following questions 1.List your current source(s) of income. 2. What do you expect your source(s) of income in the near future? 3. What are your feelings about being financially dependent vs. financially independent?

3. 4. What patterns can you see in your spending habits? 5. How do you decide what to purchase? 6. What factors do you think influence your purchasing decisions?

4. What is a Budget? A budget is a plan for managing your money. It is an estimate of income and expenses over a period of time. With a personal budget, you can get a better idea of where you spend your money to whom you owe money, and how much.

5. A budget has two categories: *Income – money earned, including wages. *Expenses – items you spend your money on, including rent and food.

6. Monthly Budget Amount – the budget estimate for the month Actual Amount – the actual income and expenses for the month Difference – the difference between the estimate and actual budget amounts.

7. EXPENSES are anything you spend your money on. ESSENTIAL EXPENSES are expenses that are required for living. *Fixed are the same each month. *Variable varies each month. NON-ESSENTIAL EXPENSES are the extra things you spend your money on.

8. 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. teens – lesson 3 - slide 3-A

9. goal-setting guidelines teens – lesson 3 - slide 3-B well-written personal and financial goals SHOULD: be realistic A student working part-time is not likely to be able to afford a new car every couple of years. be specific “I want to save $5,000 for a down payment to buy a house.” have a timeframe “I want to pay off my credit card within the next 18 months.” state the action to be taken “I want to start an automatic deposit savings account with monthly withdrawals from my checking account.”

10. Pick a job Login to google apps and go to our classroom