Managing Your Money

1. Managing Your Money Moreover, it is required in stewards that a man be found faithful. 1 Corinthians 4:2 KJV

2. Budgeting A budget is a money plan. With it you can: • Organize and control your financial resources • Set and realize goals • Decide in advance how to make your money work for you.

3. Benefits to Budgeting • Know what is going on. • Control. • Organization. • Communication. • Take advantage of opportunities. • Extra money.

4. Spending Tithe Long-term Savings Short-term Savings A Simple Budget Plan • Tithe 10% • Long-term Savings 25% • Short-term Savings 25% • Spending 40%

5. Short-term Savings $25.00 Long-term Savings $25.00 Spending $40.00 Tithe $10.00 Budget Example I To demonstrate how this simple budget plan would work, lets say you just earned $100 dollars. This is how your funds would be allocated in your budget.

6. Budget Example II Here is an example of what a budget, based on that same $100 dollars, might look like after you have established some spending and savings goals

7. Where do I save my money? • Envelope System • Checking Account • Savings Account

8. Long-term Savings Short-term Savings Spending Envelope System Using envelopes, write a separate budget category on each envelope.

9. Envelope Budgeting In each envelope you keep a list of deposits and withdrawals to track your spending. (This works particularly well for your short-term savings and your spending account) When the envelope is empty you can’t spend anymore in that category! Short-term Savings 5-1 allowance +$10.00 5-8 lawn mowing +$20.00 5-15 birthday $$ +$15.00 Short-termSavings

10. Savings & Checking Accounts Savings accounts are a great place to start putting your Long-term savings funds into. Depending on your age and maturity, checking accounts can be useful for your short-term saving funds. In either case you will need your parents guidance to establish these accounts.

11. Its not hard to keep a budget, but you will need to be able to perform these basic math operations: Five digit addition Whole number multiplication Decimal multiplication Finding a percent of a given number Budget Math

12. % Percent % Percent means “per 100.” 25 100 =25% A percent is a ratio whose second term is 100.

13. % Percent % To change a decimal to a percent, move the decimal point 2 places to the right and add the % sign. .25 25%

14. % Percent % To change a percent to a decimal, drop the % sign and put a decimal point 2 places to the left. 25% 25 .25

15. To Find Percent of a Number • Change the percent to a decimal • Then multiply. 25% .25 $60.00 X 0.25 30000 +120000 15.0000 • Remember! • The rule about multiplying decimals: • Add the digits to the right of the decimal in both numbers you are multiplying • Put the decimal the same number of places to the left in the answer.

16. Example I A boy puts 25% of the $100 dollars he earned into his short-term savings envelope. How much money did he put in the envelope? $$ ?

17. Solution I $100 X .25 500 +2000 $25.00 $25.00

18. Example II • A girl receives $15 dollars month in allowance. Her budget says that 40% percent of this money goes into her personal spending account. How much money would she put in?

19. Solution II $15 X .40 $6.00

20. Example III • During the month of August, a boy receives a weekly allowance of $5 dollars. He earned another $25 dollars doing odd jobs around the neighborhood. His grandmother also sent him $20 dollars for his birthday. He has budgeted 5% of his money to go towards church offerings. At the end of the month how much money will he have to give?

21. Solution III $5.00 X 4 weeks= $20.00 Odd jobs = 25.00 Birthday =+20.00 $65.00 X .05 $ 3.25

22. Practice! • You know what a budget is. • You know the math skills you need to use when figuring a budget… • Now, you are ready to try out these skills on some real-life budget scenarios!