nefe high school financial planning program unit two – budgeting: making the most of your money...
TRANSCRIPT
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
Unit 2 - Budgeting: MakingUnit 2 - Budgeting: Makingthe Most of Your Moneythe Most of Your Money
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
2-A-12-A-1
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
??
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
2-A-22-A-2
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
Reasons for a Spending Plan Reasons for a Spending Plan ……Helps you determine where you are Helps you determine where you are
spending your money currently.spending your money currently.
……Helps you decide where to spend your Helps you decide where to spend your money in the future. money in the future.
……You have an organized way to save for You have an organized way to save for things that cost more. things that cost more.
……Puts you in control of your financial Puts you in control of your financial future, beginning NOW.future, beginning NOW.
2-B-1 321
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
People Without a Budget… People Without a Budget…
……Are less likely to know what they have.Are less likely to know what they have.……Have no plan, often coming up short Have no plan, often coming up short
before their next paycheck or allowance.before their next paycheck or allowance.……Are almost certain to have no plan to Are almost certain to have no plan to
save for more expensive spending goals.save for more expensive spending goals.
2-B-2 321
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
QuestionsQuestionsDoes it makes sense to create and live Does it makes sense to create and live
within a budget when you don’t have a within a budget when you don’t have a lot of money?lot of money?
What if you find that you are What if you find that you are consistently spending more in one area consistently spending more in one area than you had planned to?than you had planned to?
What if you find that you can’t live What if you find that you can’t live within your budget?within your budget?
2-B-3 321
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
2-C2-C
FIXED, VARIABLE, OR PERIODIC?
Expense Fixed Variable Periodic
Loan Payment X
Electric Bill X
Twice-yearly Insurance Payment
X
???
???
For an interactive version of For an interactive version of this slide, open the Excel this slide, open the Excel File for this unit and go to File for this unit and go to the Excel Worksheet with the Excel Worksheet with this same number this same number
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
SSAAVVEE
etting aside money for “big ticket items”etting aside money for “big ticket items”
voids borrowing, which costs you a lot! It’s avoids borrowing, which costs you a lot! It’s a
ery wise thing to do, becauseery wise thing to do, because
very time you pay yourself first, you are very time you pay yourself first, you are developing adeveloping a saving habitsaving habit that leaves you that leaves you with more money to spend later on for things with more money to spend later on for things that are really important to you!that are really important to you!
PAY YOUR$ELF FIRST!PAY YOUR$ELF FIRST!
2-D-12-D-1.. (2-D-2 and 2-D-3 on Excel file Unit 2 (2-D-2 and 2-D-3 on Excel file Unit 2 Visuals.xls)Visuals.xls)
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
2-E2-E
For an interactive For an interactive version of this slide, version of this slide, open the Excel file for open the Excel file for this unit and go the this unit and go the Excel worksheet #2-EExcel worksheet #2-E
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
Personal Personal Plan for Plan for One WeekOne Week
$20.00Balance
$120.00Savings and Spending
$140.00Income
$120.00Total Savings & Spending
15.00Miscellaneous
33.00Transportation
16.50Gifts and Contributions
10.00Entertainment
14.50Clothing
11.00Food
$20.00Savings (PYF)
Savings and Spending
$140.00Total Income
15.00Allowance
$125.00Part-Time Job
Income (after taxes)
One Week
Personal Spending/Savings Plan
$20.00Balance
$120.00Savings and Spending
$140.00Income
$120.00Total Savings & Spending
15.00Miscellaneous
33.00Transportation
16.50Gifts and Contributions
10.00Entertainment
14.50Clothing
11.00Food
$20.00Savings (PYF)
Savings and Spending
$140.00Total Income
15.00Allowance
$125.00Part-Time Job
Income (after taxes)
One Week
Personal Spending/Savings Plan
NEFE High School Financial Planning ProgramNEFE High School Financial Planning ProgramUnit Two – Budgeting: Making the Most of Your Money
How to Build a BudgetHow to Build a Budget
1.1. Decide on a time frame for tracking Decide on a time frame for tracking expenses (week, two weeks, month).expenses (week, two weeks, month).
2.2. List all money you have coming in List all money you have coming in (income).(income).
3.3. Make categories for all expenses.Make categories for all expenses.4.4. Subtract total expenses from income.Subtract total expenses from income.5.5. Study your budget and your financial Study your budget and your financial
plan to make sure it fits with your plans plan to make sure it fits with your plans and goals.and goals.
2-F2-F 54321
Bu
ild a
Bu
dg
etB
uild
a B
ud
get
An
swer
Key
An
swer
Key
2-G2-G$575Total Estimated Expenses:
$575Total Estimated Expenses:25Recreation
30Recreation25Food
40Food20Electronics
40Music/Electronics20Video Game/Music
40Clothing50Clothing
40Gas45Gas
35Cell Phone40Cell Phone
Estimated Variable Expenses:Estimated Variable Expenses:
50Insurance*50Insurance
200Car Payment*200Car Payment
100Savings (P.Y.F.)100Savings (P.Y.F.)
Fixed Expenses:Fixed Expenses:
$575Total Estimated Income:$575Total Estimated Income:
15Interest Earned*15Interest Earned
$560Paycheck (after taxes)*$560Paycheck (after taxes)
Estimated Income:Estimated Income:
Jessica's Monthly BudgetJessica's Monthly Budget
$575Total Estimated Expenses:
$575Total Estimated Expenses:25Recreation
30Recreation25Food
40Food20Electronics
40Music/Electronics20Video Game/Music
40Clothing50Clothing
40Gas45Gas
35Cell Phone40Cell Phone
Estimated Variable Expenses:Estimated Variable Expenses:
50Insurance*50Insurance
200Car Payment*200Car Payment
100Savings (P.Y.F.)100Savings (P.Y.F.)
Fixed Expenses:Fixed Expenses:
$575Total Estimated Income:$575Total Estimated Income:
15Interest Earned*15Interest Earned
$560Paycheck (after taxes)*$560Paycheck (after taxes)
Estimated Income:Estimated Income:
Jessica's Monthly BudgetJessica's Monthly Budget
$575Total Estimated Expenses:
$575Total Estimated Expenses:25Recreation
30Recreation25Food
40Food20Electronics
40Music/Electronics20Video Game/Music
40Clothing50Clothing
40Gas45Gas
35Cell Phone40Cell Phone
Estimated Variable Expenses:Estimated Variable Expenses:
50Insurance*50Insurance
200Car Payment*200Car Payment
100Savings (P.Y.F.)100Savings (P.Y.F.)
Fixed Expenses:Fixed Expenses:
$575Total Estimated Income:$575Total Estimated Income:
15Interest Earned*15Interest Earned
$560Paycheck (after taxes)*$560Paycheck (after taxes)
Estimated Income:Estimated Income:
Jessica's Monthly BudgetJessica's Monthly Budget
$575Total Estimated Expenses:
$575Total Estimated Expenses:25Recreation
30Recreation25Food
40Food20Electronics
40Music/Electronics20Video Game/Music
40Clothing50Clothing
40Gas45Gas
35Cell Phone40Cell Phone
Estimated Variable Expenses:Estimated Variable Expenses:
50Insurance*50Insurance
200Car Payment*200Car Payment
100Savings (P.Y.F.)100Savings (P.Y.F.)
Fixed Expenses:Fixed Expenses:
$575Total Estimated Income:$575Total Estimated Income:
15Interest Earned*15Interest Earned
$560Paycheck (after taxes)*$560Paycheck (after taxes)
Estimated Income:Estimated Income:
Jessica's Monthly BudgetJessica's Monthly Budget