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.