SPENDING ON A BUDGETCoach Markus
KEEPING RECORDS
Expense diary Check register Software program (Quicken, Excel, etc.) Receipt files Scanner/photos
WHY KEEP RECEIPTS?
Returns Exchanges Warranties Gifts to others Taxes
STORING RECEIPTS
File cabinet Envelopes Shoe box Electronically
BUDGETING DIARY ACTIVITY
For the next two weeks, you will keep record of your purchases.
Whatever you buy, must have an accompanying receipt. (Ask for it and keep it!)
Due Date: Thursday, 31 October
EXPENSE CATEGORIES
Automobile Clothing Computer Gifts Entertainment Food Rent/Mortgage Personal Care
EXPENSE CATEGORIES
Recreation Savings School Transportation
SETTING UP A BUDGET
1. Estimate your income (fixed, usually)
2. Estimate your expenses to include:1. Fixed expenses
2. Flexible expenses
3. Extras
SETTING UP A BUDGET
3. Coping with change- Plan for changing conditions that increase or decrease your
expenses
4. Keep Savings in mind- Set money aside to help meet goals
5. Balance your budget- Each month, compare your expenses to your income- Rework your budget if need be
BALANCING INCOME AND EXPENSESWhat to look for, what to do?
1. Income/Expense comparison
2. Is this positive or negative?
3. What adjustments need to be made?
4. Figure out how you can decrease expenses or increase income.
5. Make changes as needed.
TIPS FOR MAINTAINING A BUDGET Become a good consumer Exercise self-control Develop a good record-keeping system Evaluate your budget regularly
KELLY’S BUDGET ACTIVITY
Read through the case information Fill in the “Budget column” as directed Read through the “Actual” expenses sheet and fill in
budget sheet accordingly Answer the questions and turn-in at the end of class for
credit.