BUDGETING
A budget is a plan of how you are going to manage your money (how much money is coming in and how much is going out). Having a budget is one of the best ways to manage your money. Q. Why do we need to budget? A. To control our money and save for the things in life we really want and need.
SAMPLE BUDGET
A Income Wages/ Salary ______ Centrelink Benefit ______ Casual Job ______ Austudy ______ Pocket Money ______ Other ______ TOTAL $_____ B
SAMPLE BUDGET CONT’D
If the amount you spend is the same as the amount you earn, you’re not doing too badly. If you are spending less than you are earning, that’s great news – you’re saving. If your expenses are greater than your income, we have a problem. This is how people get into debt.
WHY BANK?
There are many ways you can save your money, under the mattress, in a sock or in the bank. It’s usually best to open a bank account to keep your money in. As well as earning interest it’s also a great way to save. When you have money in your wallet you’re tempted to spend it on things you don’t need. There are several different banks that offer different benefits to customers, it’s up to you to do your homework and find which bank is best for you. Find a bank that doesn’t charge many fees or taxes. Some banks offer Savings Accounts that don’t have fees for people receiving Centrelink benefits or who are under a certain age. You may wish to open an account with a Building Society rather than a Bank, as most Building Societies don’t have as many fees as Banks.
WHAT IS:
BUDGET … Is a plan of money coming in and money going out. It helps you to decide where your money needs to go. Now that you are getting an income it’s helpful to know how to budget and save for the things in life that you need and want. INCOME … Is money we receive from either a job or Centrelink. EXPENSES … are the things that need to be paid for out of our income. For example Rent, Food, Clothing, Entertainment, Electricity, Gas, Fines or Debts. DEBT … is an amount of money you owe someone, For example: you may have borrowed money from a friend for a movie ticket. This is now a debt that you owe your friend. Or money you owe on a Credit Card, Personal loans, or mobile phones.
Expenses Living Rent / Board Food Utilities (gas/electricity) Telephone Mobile Clothing/footwear Other Personal Fines Debts Entertainment / Rec Education Grooming / Hygiene Other Transport Bus / Train Car Rego Licence Insurance Petrol Parking Other TOTAL Column A - B =
_______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ _______ $ _______
$________
DEBT
Keep out of debt!!! Debt is what will cause problems for many people in the long run. Buying things you can’t really afford or copping a fine can hurt. That train fine you got for not having a ticket can grow and you may find that you can’t get your drivers licence because you didn’t pay the fine when you got it. DON’T IGNORE IT BECAUSE IT WON’T GO AWAY!! There are places that will help you!
South East Metropolitan Youth Action Unit 3 / 64-66 Kent Street Cannington WA 6107 Admin JPET Fax Email 9356 1911 9356 1925 9356 1905 semya@semya.org.au www.semya.og.au
AGENCIES THAT CAN HELP
Youth Legal Services Bankruptcy Hotline 9202 1688
HINTS & TIPS
Ask someone to help you create a budget and stick to it. If you have debts don’t be ashamed to ask for assistance in paying them off Make a list on payday of things that need to be paid or bought. Stick to the list. Try not to lend money to people. Help them instead create a budget like that one that’s working for you Learn to say “NO”. If you can’t afford it don’t buy it. Use budget cards from places such as Telstra, Western Power and Alinta Gas. Shop around.. Check out prices of goods and compare them… buy the cheapest. Pay your rent and utilities before spending money on anything else. At least you know you will still have a roof over your head for the week. If you have a debt it doesn’t mean you have to pay it all at once. Ring and make a plan with them to pay it off at a reasonable rate every week or fortnight.
9325 2411 Financial Information Service 13 23 00 Armadale Information & Referral Centre 9497 1406 The Gowrie – Belmont 9478 3788 The Gowrie – Karawara 9450 5433 Helping Out People Everywhere 9221 5021 Sussex Street Community Law Service 9470 2676 West Assist 9335 8898 Gosnells Community Support Service 9490 2393 SPONSORED BY
NATIONAL AUSTRALIA BANK
TIPS AND HINTS FOR YOUNG PEOPLE ON BASIC BUDGETING INCLUDING AN EASY TO FOLLOW BUDGET PLAN