1. Keeping a Budget

2. a couple thoughts
• powerpoint lectures, activities,
guided notes, old school notes,
reading, reading guides.
• i’m way too lenient with late
work. That is going to change.
• trying to spice things up-- but
looking for suggestions.

3. objective
•understand what a budget is
and the steps required to
create one.

4. what is a budget?
•a plan about how to spend
your money.
– Why do you need a plan?
•give yourself limits in
different categories & then
try to stick to them.

5. why bother to make a
budget?
1. know where your money is
going.
2. make sure your expenses <
income.
3. identify “problem” areas of
spending.

6. how do I make a
budget?
1. track expenses to get estimates.
2. make a budget template (or use a
pre-made one).
3. track income/expenses.
4. analyze results.
5. adjust expenses.

7. what tools do I need?
•paper & pencil.
•excel (or other spreadsheet
software).
•the “envelope system.”

8. what might cause a
budget to fail?
•unexpected expenses.
•sudden loss of income.
•over-ambitious goals.

9. budgeting tips
• pay yourself first!
• if you don’t trust yourself with
a credit card, use only cash.
• track your expenses.
• expenses must be less than
income for sustainable
lifestyle.

10. want to learn more?
• internet resources
– www.thesimpledollar.com
– www.getrichslowly.org
• books
– Your Money or Your Life
– The Total Money Makeover

11. 20 square income
budget game
• You have an “income” of 20
squares.
• You must place at least one square
in each of the starred categories
first (required expenses).
• Use the rest of your squares to
finish your budget.
• Be prepared to share.

12. my 20 square budget
• transportation- 1
• housing- 4 squares
square
• insurance- 4
• clothing- 1 square
squares (2 auto, 2
(laundry)
health)
• savings- 4 squares
• furnishings- 1
• communication- 2
square
squares
• food- 2 squares • personal care- 1
square

13. breaking it down
• how did you decide what to
spend your money on?
• how do your values affect your
spending choices? Your goals?
Your past experiences?
• learn anything about yourself?

14. round 2
•your income has been
reduced to thirteen squares.
•erase some selections (you
may also make new
choices).

15. my 13 square budget
• housing- 3 squares • clothing- no
• insurance- 3 squares
squares (2 auto, 1
• savings- 1 square
health)
• communication- 2
• furniture- no
squares
squares
• personal care- 1
• food- 2 squares
square
• transportation- 1
square

16. breaking it down again
•what did you give up?
•why?
•were there any hard choices
you had to make?

18. my 2008 expenses
• What do you notice about the
summer months?
• What might change about this
once I graduate?
• Anything cost more than you
expect?

19. objective, revisited
•understand what a budget
is and the steps required to
create one.
•Got it?

20. leave the classroom
with this…
• Budgets help you to reach your
financial goals.
• BUT, you have to do what
works for you.
• A budget is worthless if you
don’t stick to it, so make it
reasonable.