Budgets

What is a Budget?A budget is a written document or electronic file that helps

you take control of your personal financesThe goal of a budget is to identify how much money you make

(net income) and then you subtract it from your expenses (things you need to spend money on)

It is an excellent money management tool that helps you achieve your financial goals. It is especially important in the following situations:

BudgetsIf you find money is tight

If you don’t know where your money is going

If you are having problems paying off your debtsIf you don’t save regularly

If you want to find ways to make your dollar stretch even further

Making a BudgetMake a list of all the necessities that you think are

important to include in a budget.

What do you think is important to have in a budget?

Detailed List of Budgetary Items for Avg. Family• Houses (rent vs owning) • Car vs bus pass • Gasoline

• Food • Clothing • Heat

• Water • Municipal Taxes • Housing Insurance

• Phone • Television • Internet

• Extra Curricular Activities

• Entertainment – movies, video games, dinners, opera, theatre and etc...

• Health Care Costs – MSP, Dental, Medication, Toiletries

• Maintenance Repairs - at living accommodation

• Savings • Student Loans

HOUSING$370

$700 - 1800

$700 - $1000

• At home w/ parents

• Bachelor Suite/1 Br Apartment

• Share 2 Br Apartment w/ roommate

*Average monthly costs for BC youth after high school in the Lower Mainland

TRANSPORTATION$1957

$402

$156

• New Car – (Loan, Insurance, Gas)

• Used Car - (Loan, Insurance, Gas)

• Public Transit

*Average monthly costs for BC youth after high school in the Lower Mainland

FOOD$431

$193

$35

• Buy at Grocery Stores

• Occasional eating out (Dine out / Take out)

• Beverages

*Average monthly costs for BC youth after high school in the Lower Mainland

UTILITIES$69

$54

• Electricity

• Natural Gas

*Average monthly costs for BC youth after high school in the Lower Mainland

COMMUNICATIONS

*Average monthly costs for BC youth after high school in the Lower Mainland

• Landline Phone $27

• Cell Phone $85

• Internet $46

• Cable $51

• Bundle (Phone, Internet & Cable)

$118

CLOTHING

$166

$90

• Women• Men

*Average monthly costs for BC youth after high school in the Lower Mainland

(Clothing, Footwear & Accessories)

HEALTHCARE$42

$37

$41

$23

• Medications (prescriptions)

• Medications (non-prescriptions)

• Dental Services• Eye-care Goods &

Services

*Average monthly costs for BC youth after high school in the Lower Mainland

INSURANCE$51

$4 - 15

• Medical Premiums

• Apartment

Content

*Average monthly costs for BC youth after high school in the Lower Mainland

ENTERTAINMENT $33

$46

$83

$61

• TV, Video, Audio Equipment

• Pro Sporting event (1x)

• Concert (1x)• Nightclubs/pubs (2x)

*Average monthly costs for BC youth after high school in the Lower Mainland

ENTERTAINMENT • Health Club fees• Sport Fees &

Equipment• Lessons

$34$59

$17

*Average monthly costs for BC youth after high school in the Lower Mainland

PERSONAL $35

$86$27$23

• Hair Grooming• Manicures• Makeup• Personal Care (soap,

shampoo, etc..)

*Average monthly costs for BC youth after high school in the Lower Mainland

Monthly Budget Exercise You work 40 hours per week at minimum wage ($10.45 per hour)

Expenses – Housing, Transportation, Utilities, Food, Clothing, Health Care, MSP Insurance, Housing Insurance, Personal Care (Toiletries), Communications, Entertainment, Savings.

In pairs (or group of three) identify how much money you would spend for each expense per month.

Then use the computers (in pairs), download the “1. budget template” from my website and fill it out accordingly.