Personal Finance: Budgeting

KCSS

Learning Goals: We are learning how to create a personal

budget

We using technology (Excel) to create a monthly budget

We are learning how appropriate spending and saving can improve financial well being

Success Criteria: I can work in my group to create a weekly food

budget for a “typical” family

I can use Excel to complete my monthly budget.

Game PlanMoney lessons from the “rich”

http://www.theloop.ca/living/money/the-next-step/photo-gallery/-/p/6641/Money-lessons-from-the-rich/2545950

Investor Ed: Track-o-matic http://getsmarteraboutmoney.ca/en/managing-your-money/planning/budgeting/Pages/video-track-your-spending-track-o-matic.aspx?group=Funny%20Money&page=1#.UlR1quBg8dI

Article: Allowance Breakdown How kids are spending & Questions

Creating a balanced budget

SGA budgeting (small group activity)

Inside Circle/Outside CircleOn the sticky note provided, list all of the

things you purchased in the past month (as many as you can remember)

On the back, list the total you spent and how you “earned” that money

Fill in the T-chart on the following slide:What are the different forms of earning

income ?

What are the different expenses you/your family have per month?

Creating A BudgetIncome (money in)

ExamplesExpenses (money out)

Examples

Budgeting Investor Ed

http://getsmarteraboutmoney.ca/en/managing-your-money/planning/budgeting/Pages/Create-a-balanced-budget.aspx#.UlR2SuBg8dI

Gail Vaz-Oxladehttp://www.gailvazoxlade.com/

Youtube Video: Till Debt Do Us Part

http://www.youtube.com/watch?v=1pQJxGIFzdo

Why Budget?A budget can help you:

keep track of your income and expenses

stay on top of your monthly bills

be prepared for unexpected expenses

avoid overspending

figure out how much you need to save to meet your financial goals.

Source: Investor Ed

5 Components of a Budget1. Income after taxes – This is the amount of

money you have to work with every month. If you’re self-employed, a seasonal or part-time worker, or paid by commission, your income may vary. To create your monthly budget, take your annual income and divide by 12. Use this amount as your monthly income.

2. Fixed monthly expenses – These expenses tend to stay the same (or close to the same) from month to month. They include bills such as your rent or mortgage, cable, Internet, utilities and fixed loan repayments.

5 Components of a Budget3. Variable expenses – These expenses

change from month to month. They include things like gas, groceries, your daily coffee, meals out and entertainment expenses.

4. Occasional expenses – These expenses come up from time to time, such as clothing, gifts and vacations.

5. Savings – Make room in your budget for short-term emergency savings and longer-term savings to help you reach your financial goals

Saving money with Angela Self and Rob Carrickhttp://www.getsmarteraboutmoney.ca/en/mana

ging-your-money/planning/budgeting/Pages/video-saving-money.aspx?group=Saving%20and%20budgeting&page=1#.UlR4JuBg8dI

School of Finance Finding my finances

http://blog.getsmarteraboutmoney.ca/episode6-finding-my-finances

Small Group ActivityYou will be divided into 7 groups of 4

Each group will be given a family scenario

You are to create a weekly food budget given your scenario

You will build a monthly budget tomorrow using this information individually

Student of Debt“Racking up $52,000 of debt while living rent

free in his parents’ basement, 35 year old perpetual student Chris has a lot to learn. Chris’ wife, Yen, is the breadwinner of the family but now they’re expecting a baby. Gail schools Chris for his carefree attitude towards his crushing student loans and finally gets him to feel the damaging weight of his debt. Once Gail helps Yen find her voice, Chris is forced to make tough choices about his future.”

http://www.slice.ca/shows/EpisodeGuide.aspx?Title_Id=116087&Root_Title_Id=93097