Unit 2 - Budgeting: Making the Most of Your Money

1. Good Morning! No Bell-ringer today, but please grab a journal check slip from the handout table and prepare for the first bell-ringer check—Unit 1 bell-ringers. Option 1: Tear out and staple journal check slip to bell-ringers and turn into inbox.Option 2: Fill out journal slip and Ms. G can come check you off—then turn journal check slip into inbox.

2. Unit 1 Assignments • IF you are missing any assignments from Unit 1, please turn them into the inbox, this is your LAST chance to receive any credit for your work.

3. Take out your notebooks and turn to your ‘notes’ section. • Date & Title them: Budgeting, making the most of your money!

4. Unit 2 - Budgeting: Making the Most of Your Money

5. Spending Plan • A spending plan, or a budget, is a plan for managing your money during a given period of time. • It’s helps you to see all options and make smarter choices to obtain your needs and wants. • A spending plan changes when income fluctuates.

6. T-Chart • In your notes, draw T-Chart, label side one, my expenses, label side two my parent’s expenses. • Write down under my expenses all of the things you spend money on—under my parents’ expenses, write down all the things you know your parents/guardians spend money on.

7. NEFE High School Financial Planning Program ? Unit 2 – Budgeting: Making the Most of Your Money For an interactive version of this slide, open the Excel File for this unit and go to Excel Worksheet 2-A-1 2-A-1

8. NEFE High School Financial Planning Program Unit 2 – Budgeting: Making the Most of Your Money For an interactive version of this slide, open the Excel File for this unit and go to Excel Worksheet 2-A-2 2-A-2

9. …Helps you determine where you are spending your money currently. …Helps you decide where to spend your money in the future. …You have an organized way to save for things that cost more. …Puts you in control of your financial future, beginning NOW. Reasons for a Spending Plan Three Slides 2-B-1

10. …Are less likely to know what they have. …Have no plan, often coming up short before their next paycheck or allowance. …Are almost certain to have no plan to save for more expensive spending goals. People Without a Budget… Three Slides 2-B-2

11. 3 Types of Expenses • Fixed: cost the same amount every time. Examples, mortgage payment, rent. • Variable: fluctuate in amount, so you usually have more control over how much they’ll be. Examples, food. • Periodic: Occasional expenses that you do not pay every month. Example: some people pay car insurance every 6 months. Or a repair cost to your car.

12. For an interactive version of this slide, open the Excel File for this unit and go to the Excel Worksheet with this same number 2-C

13. S PAY YOUR$ELF FIRST! etting aside money for “big ticket items” A voids borrowing, which costs you a lot! It’s a V ery wise thing to do, because E very time you pay yourself first, you are developing asaving habitthat leaves you with more money to spend later on for things that are really important to you! 2-D-1.(2-D-2 and 2-D-3 on Excel file Unit 2 Visuals.xls)

14. Does it makes sense to create and live within a budget when you don’t have a lot of money? What if you find that you are consistently spending more in one area than you had planned to? What if you find that you can’t live within your budget? Questions Three Slides 2-B-3

15. Decide on a time frame for tracking expenses (week, two weeks, month). List all money you have coming in (income). Make categories for all expenses. Subtract total expenses from income. Study your budget and your financial plan to make sure it fits with your plans and goals. How to Build a Budget 2-F