NEFE High School Financial Planning Program
Unit Two – Budgeting: Making the Most of Your Money
Making and Living
Within a Budget
NORTH DAKOTA PERSONAL FINANCE EDUCATION
How do you spend your money?
?
Sample Household Budget
Reasons for a Spending Plan
• Helps you determine where you are
spending your money
• Helps you decide where to spend your
money in the future
• You have an organized way to save for
things that cost more
• Puts you in control of your financial
future beginning NOW
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People Without a Budget
• Are less likely to know what they have
• Have no plan, often coming up short before
their next paycheck or allowance
• Are almost certain to
have no plan to save for
more expensive spending
goals
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Questions
• Does creating and living within a
budget make sense when you don’t
have a lot of money?
• What if you find that you consistently
are spending more in one area than
you had planned?
• What if you find that you can’t live
within your budget?
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FIXED, VARIABLE OR PERIODIC?
Expense
Fixed
Loan Payment
Electric Bill
Twice-yearly Insurance
Payment
???
???
Variable
Periodic
X
X
X
Pay YOUR$ELF First!
S etting aside money for “big ticket items”
A voids borrowing, which costs you a lot! It’s a
Very wise thing to do because
Every time you pay yourself
first, you are developing a
saving habit that leaves
you with more money to
spend later for things that are really
important to you!
Personal
Plan for
One Week
Personal Spending/Savings Plan
One Week
Income (after taxes)
Part-Time Job
$125.00
Allowance
15.00
Total Income
For an interactive version
of this slide, open the Excel
file for this unit and go to
Excel worksheet #2-E.
$140.00
Savings and Spending
Savings (PYF)
$20.00
Food
11.00
Clothing
14.50
Entertainment
10.00
Gifts and Contributions
16.50
Transportation
33.00
Miscellaneous
15.00
Total Savings & Spending
$120.00
Income
$140.00
Savings and Spending
$120.00
$20.00
Balance
How to Build a Budget
1. Decide on a time frame for tracking expenses
(week, two weeks, month).
2. List all money you have coming in (income).
3. Make categories for all expenses.
4. Subtract total expenses from income.
5. Study your budget and financial plan to make
sure they fit with your plans and goals.
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Jessica's Jessica's
Monthly Budget
Monthly Budget
Jessica's Jessica's
Monthly Budget
Monthly Budge
EstimatedEstimated
Income: Income:
EstimatedEstimated
Income: Income:
* $560
*
Paycheck Paycheck
(after taxes)
(after taxes)
$560
Interest Earned
Interest Earned
*
*
Interest Earned
Interest Earned
Build a Budget
Answer Key
Paycheck Paycheck
(after taxes)
(after taxes)
$560
15
Total Estimated
Total Estimated
Income: Income:
$575
15
$575
Total Estimated
Total Estimated
Income: Income:
$575
Fixed Expenses:
Fixed Expenses:
Fixed Expenses:
Fixed Expenses:
Savings (P.Y.F.)
Savings (P.Y.F.)
100
Car Payment
Car Payment
200
*
200
50
*
50
Insurance Insurance
15
100
EstimatedEstimated
Variable Expenses:
Variable Expenses:
Savings (P.Y.F.)
Savings (P.Y.F.)
100
*
Car Payment
Car Payment
200
*
Insurance Insurance
50
EstimatedEstimated
Variable Expenses:
Variable Expenses:
Cell PhoneCell Phone
40
40
Cell PhoneCell Phone
35
Gas
45
45
Gas
40
Clothing Clothing
50
50
Clothing Clothing
40
Video Game/Music
Video Game/Music
20
20
Music/Electronics
Music/Electronics
40
ElectronicsElectronics
20
20
Food
40
Food
25
25
RecreationRecreation
25
25
Gas
Food
RecreationRecreation
Total Estimated
Total Estimated
Expenses:
Expenses:
$575
$575
Gas
Food
30
Total Estimated
Total Estimated
Expenses:
Expenses:
$575
NEFE High School Financial Planning Program
Unit Two – Budgeting: Making the Most of Your Money
Recordkeeping
NEFE High School Financial Planning Program
Unit Two – Budgeting: Making the Most of Your Money
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Why Should I Have a Budget?