creating a budget n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Creating a budget PowerPoint Presentation
Download Presentation
Creating a budget

Loading in 2 Seconds...

play fullscreen
1 / 29

Creating a budget - PowerPoint PPT Presentation


  • 128 Views
  • Uploaded on

Creating a budget. Warm-Up Questions CPS Questions 1 – 2. Note for teacher: Use “Pick a Student” button in CPS. Chapter Overview. Lesson 1: Creating a Budget L esson 2: Savings and Bank Accounts Lesson 3: Real-Life Issues in Buying and Selling. Lesson Overview.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Creating a budget' - ahmed-benjamin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide2

Warm-Up Questions

CPS Questions 1 – 2

Note for teacher: Use “Pick a Student” button in CPS

Chapter 1, Lesson 1

chapter overview
Chapter Overview

Lesson 1: Creating a Budget

Lesson 2: Savings and Bank Accounts

Lesson 3: Real-Life Issues in Buying and Selling

Chapter 1, Lesson 1

lesson overview
Lesson Overview
  • The Components of a Personal Financial Plan
  • The Steps to Creating and Developing a Personal Financial Plan
  • The Elements of a Budget

Chapter 1, Lesson 1

quick write
Quick Write

Why do you think it is important for you to have a financial plan? Do you think a plan is just as important for someone who is wealthy as it is for someone who’s just getting by? Why or why not?

Note for teacher: Use “Pick a Student” button in CPS

Chapter 1, Lesson 1

Photo courtesy of Shutterstock

components of a financial plan
Components of a Financial Plan
  • Finance - the management of money
  • Personal Finance - how you manage your money

Chapter 1, Lesson 1

Photo courtesy of Shutterstock

advantages of a personal financial plan
Advantages of a Personal Financial Plan
  • Make good financial decisions
  • Evaluate the opinions of financial advisers

Chapter 1, Lesson 1

Photo courtesy of Shutterstock

creating a personal f inancial plan
Creating a Personal Financial Plan
  • Managing your budget
  • Managing your liquidity
  • Financing Large Purchases
  • Protecting Your Assets
  • Investing for the Future
  • Investing in Your Retirement

Chapter 1, Lesson 1

Photo courtesy of Shutterstock

managing your budget
Managing Your Budget
  • Budget
    • Detailed summary of expected expenses and income
  • Income
    • Money coming in on a regular basis
  • Expenses
    • Money going out for needs and wants

GOAL: Income > Expenses

Chapter 1, Lesson 1

Photo courtesy of Shutterstock

managing your liquidity
Managing Your Liquidity
  • Liquidity
    • Access to funds to cover a short-term cash need
    • Money needed to cover unexpected expenses

Chapter 1, Lesson 1

Photo courtesy of Shutterstock

financing your large purchases
Financing Your Large Purchases
  • Financing
    • Obtaining or providing money for a specific purpose
    • Generally comes in the form of loans
  • Interest
    • Charge on borrowed money
  • Compound Interest
    • Interest on accumulated unpaid interest

Chapter 1, Lesson 1

protecting your assets
Protecting Your Assets
  • Asset
    • Something of value that you own
    • Tangible assets are physical items
    • Assets may be protected with insurance
  • Insurance
    • An agreement between two parties
    • Premium or monthly fee

Chapter 1, Lesson 1

investing for the future
Investing for the Future
  • Investment
    • Something you own that you expect to increase in value over time
  • Examples of investments:
    • Stocks
    • Bonds
    • Mutual Funds

Chapter 1, Lesson 1

Photo courtesy of Shutterstock

investing in your retirement
Investing in Your Retirement
  • Retirement
    • Period of life during which you no longer work full time
  • People typically retire once they qualify for Social Security
  • Military members may retire after 20 years of service
  • Start planning for retirement now

Chapter 1, Lesson 1

Photo courtesy of Shutterstock

slide15

Learning Check Questions

CPS Questions 3 – 4

Note for teacher: Use “Pick a Student” button in CPS

Chapter 1, Lesson 1

activity 1 financial planning process
Activity 1: Financial Planning Process
  • On the worksheet provided, list the six steps in the financial planning process.
  • For each step, list an activity/task that you should accomplish.
  • Be prepared to share your answers with the class.

Chapter 1, Lesson 1

steps for developing a personal financial plan
Steps for Developing a Personal Financial Plan
  • Establish your financial goals:
    • How important is money to you?
    • What do you need money for?
    • Be realistic
    • Timing is important:
      • Short-term
      • Intermediate-term
      • Long-term

Chapter 1, Lesson 1

Photo courtesy of Shutterstock

slide18

Learning Check Questions

CPS Questions 5 – 6

Note for teacher: Use “Pick a Student” button in CPS

Chapter 1, Lesson 1

activity 2 financial goals
Activity 2: Financial Goals
  • On the worksheet provided, identify 3-5 financial goals for each timeframe:
    • Short-term goals
    • Intermediate goals
    • Long-term goals
  • Be prepared to share your answers with the class.

Chapter 1, Lesson 1

steps for developing a personal financial plan cont
Steps for Developing a Personal Financial Plan (cont)
  • Your Current Financial Position
    • Present financial position impacts future decisions
  • Identify and Evaluate Alternative ways to Achieve Goals
    • Savings Account
    • Investments/Stocks

Chapter 1, Lesson 1

Photo courtesy of Shutterstock

steps to creating a personal financial plan cont
Steps to Creating a Personal Financial Plan (cont)
  • Select the best plan
    • Should be a plan you can stick with
  • Evaluate your plan
    • Review it regularly to see how you’re doing
  • Revise your plan
    • Note where it’s worked and not worked

Chapter 1, Lesson 1

Photo courtesy of Shutterstock

slide22

Learning Check Questions

CPS Questions 7 – 8

Note for teacher: Use “Pick a Student” button in CPS

Chapter 1, Lesson 1

activity 3 smart money research
Activity 3: Smart Money Research
  • Use the internet to research smart money management techniques.
  • Focus on tips that help meet your financial goals.
  • Identify your top 5 tips for smart money management.
  • Be prepared to share your tips with the class.

Chapter 1, Lesson 1

the elements of a budget
The Elements of a Budget
  • Income – money you receive regularly
    • Salary / Wages
    • Savings
    • Investments
  • Expense – money you spend
    • Clothing
    • Entertainment
    • Food
    • Car

Graphic courtesy of Shutterstock

Chapter 1, Lesson 1

slide25

Learning Check Questions

CPS Questions 9 – 10

Note for teacher: Use “Pick a Student” button in CPS

Chapter 1, Lesson 1

activity 4 personal budget planning
Activity 4: Personal Budget Planning
  • Using the worksheet provided, create a three-month budget listing your expenses and income.
  • Is your budget balanced? Is your budget realistic? If not, revise it.
  • Be prepared to share your tips with the class.

Chapter 1, Lesson 1

summary
Summary
  • The Components of a Personal Financial Plan
  • The Steps to Creating and Developing a Personal Financial Plan
  • The Elements of a Budget

Chapter 1, Lesson 1

slide28

Review Questions

CPS Questions 11 – 12

Note for teacher: Use “Pick a Student” button in CPS

Chapter 1, Lesson 1

slide29
Next…
  • Savings and banking accounts

Graphic courtesy of Shutterstock

Chapter 1, Lesson 1