community money advice’s budget coaching training
TRANSCRIPT
Community Money Advice’s
Budget Coaching Training
Objectives Understand the basic principles of budgeting
Help a family to draw up a budget
Recognise when it is necessary to engage in support
Ensure the budget accurately reflects the client’s lifestyle
Understand the importance of sustainability
Know what information will be needed to draw up a budget
Know how to maximise income & minimise expenditure
Appreciate the difficulties of living on a tight budget
Know what tools are available to assist budgeting
Be able to explain the benefits of budgeting
Understand when it is necessary to revise a budget
Know about Basic bank accounts & how to obtain them
Be able to draw up a budget!!!!
Why Budget?
Helps them stay in control
Helps anticipate future problems
Helps plan for regular areas of expenditure
Helps reduce stress
Protects family relationships
Prevents future debt issues
33% of the population of Britain don’t have any savings at all
How does budgeting help?
When should a budget be revisited or revised?
70% of family breakdowns are due to problems/conflicts in the area of money
Some answers to why it is necessary to budget & when should a budget be
revisited
It helps them to stay in controlIt gives an accurate picture of where the money goesPotential problems can be identified earlyPriority expenditure can be highlighted and metIt reduces the build up of debtImpulse buying is reducedThe issues of giving & saving can be discussed
A change in family circumstancesChange in working hours
Illness/bereavementLarge purchases need to be made
Older children leaving homeNew children coming along
Moving homeRegular review such as annually
How do you budget?
Exercise 1 Document Checklist
List what documents might be necessary and relevant to assist your client in producing an accurate budget
Exercise 2 Working Through a Calendar
Think of your own household and use the Calendar sheet to fill in the important financial dates. Allocate amounts for these based on what you think you may spend then total them up for the year and divide by 12 to give a monthly amount
Exercise 3 Income & expenditure streams
List regular streams of income and expenditure and their frequency based on your household including those already identified in Exercise 2
Maximising income & minimising expenditure
Think of ways that could be looked at to
increase a household’s income
Think of areas that could be looked at to reduce expenditure
Giving, Savings, Christmas & Birthdays
How much would you allocate towards each category?
How would you discuss each of these categories with someone who has a completely different idea to you
What tips can you give to those who haven’t saved before?
Most UK families will spend between £530 and £682 on gifts, decorations, food and drink at Christmas this year
Exercise 4 Drawing up the final budget
Use your current financial situation and the information from Exercises 2 and 3 to fill in the CMA budget sheet
Exercise 5 Deficit budget
Your client may be have deficit where expenditure exceeds the incomeUsing your own budget sheet look at ways in which your family’s items of expenditure can be reduced, where savings can be made and your income increased, if possible
Ongoing support when helping clients to
budget Agree a regular review period
Be there to listen and help when difficulties arise
Have a directory of support services you can refer to
Encourage communication within the couple/family
Discourage further borrowing especially from family members
Support them to keep going
Continually encourage honesty & realism in expenditure levels
Resources & websites
There are a wide variety of resources available that can be downloaded from CMA’s website that complement the training and used as aids when assisting your clients with budgeting
There are also a number of useful website links at the back of your manual that are worth looking at