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Create a Budget

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									Financial Wellness Curriculum
The Budgeting Process


Budgeting Objectives
• Budget truths and misconceptions • The budgeting process • Income vs. expenses

• Create a budget

Budgeting Misconceptions
• A budget won’t allow me to enjoy life or spend money on “fun” things • It’s unrealistic and restricting • Budgets are “set in stone”

The Truth About Budgeting
• A necessary part of managing your money • Enables financial independence

• Helps to manage and prevent debt • Prepares you for the future by balancing spending and savings


The Budgeting Process
Three Steps • Goals – what you want • Income – how much money you earn • Expenses – how much money you spend

What are your goals?

Budgeting Process Goals

• Short term – immediate to 1 year • Long term – 2 to 5 years or longer


Budgeting Process - Income
• Think about your sources of income after graduation: – Graduation money
– New job – Second job or part-time job

• Determine how much money you have saved and how much you expect to earn.

Where Does Your Money Go? • Rent/Mortgage • Taxes/Insurance/Medical • Food • Cell phone/Utilities • Transportation: Car, gas, train, etc. • Student loan payment • Clothing • Entertainment • Investments • Day care • Credit cards and other debt

The Budgeting Process Expenses


The Budgeting Process Expenses
• Evaluate and track spending – Do you run out of money before the end of the week or month? – If so do you know where you money went? • Eating out • Social activities • Personal appearance • Clothes • Savings • Church or charity

• Paying debt • Sports

• Hobbies

Creating a Budget
Think spending plan, not budget

• Gather the information you need to create your budget - income & expenses –Pay stubs, ATM receipts, bills, expense tracker, etc. –Consider savings an expense • Figure out how much you need to save to reach your short-term and long-term goals
A budget lets YOU have more control


Creating a Budget


Budgeting 101
A Day in YOUR Life - What to Eat and Where? Eat Out • Café Latte & muffin • Cheese steak & bottle water • Drive-thru meal Total: $20.00 Price per meal: $6.67 Total: $17.00 Price per meal: $2.42 And the coffee will last almost a month!

Eat In Go to the store and buy your meals for the week • 1lb coffee • Lunch meat & bread • Pasta and sauce • Salad

Budgeting Objectives
• Budget truths and misconceptions • The budgeting process • Income vs. expenses • Create a budget

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