1. Financial Planning and
Budgetinghttp://www.youtube.com/watch?v=VdGIKX m8FEU
2. News Flash... Terms Generation X, Baby Boomer, Financial
Independence, Mutual Funds, Stocks, Investments, Down Payments....
Joe??? What do you think? How many people would have made the same
choice as Joe? Sally??? What do you think? How many people would
have made the same choice as Sally? 3. Whats your money style? On a
loose leaf sheet of paper complete the following questionnaire
todetermine your money style? Calculate your totals based on the
following info: 1.A 0 B1C4D3E2 2.A 3 B2C1D0E4 3.A 2 B1C0D4E3 4.A 4
B0C3D1E2 5.A 2 B4C3D1E0 6.A 4 B2C3D0E1 7.A 2 B2C4D3E-0 8.A 1
B3C0D4E2 9.A 0 B3C4D1E2 10. A 3B4C1D2E0 11. A 4B3C2D1E0 4.
Continued.... 12. A 2 B1 C0 D3 E4 13. A 1 B3 C0 D2 E4 14. A 2 B1 C0
D3 E4 43 56 POINTS = MISER
http://www.youtube.com/watch?v=34w8xqFz3eU 35 42 POINTS = CAUTIOUS
SAVER 21 34 POINTS = WISE PLANNER 10 20 POINTS = HIGH ROLLER 0 9
POINTS = CONFIRMED SPENDER 5. Why are resource choices soimportant?
Dependency or self-sufficiency How you spendyour time and money
determine your level ofindependence. Financial autonomy means
youcan make your own decisions and be the boss ofyour own life as
an adult without being dependenton others. Controlled by others or
personal power The wayyou spend your money can determine how
muchpersonal power you will have. This includes thepower to make
your own choices, follow your owndirection and create your own
opportunities. 6. Continued... Lifestyle Your resource choices will
determineyou lifestyle. Do you want to get married, havechildren,
travel, live in a large home, or start abusiness, just to name a
few. Finaicialindependence means more options. Relationships What
can be more important thanthat? Relationships can be a
meaningfulresource and being overly focused on money canhurt your
relationships. It is up to you to balanceyour resources. Success
and Happiness It is up to you todetermine what success means to you
and tospend your resources accordingly. You will findhappiness as
you make resource choices that 7. Budgeting What is the worst
financial decision you have ever made? BUDGET A PLAN FOR SPENDING
ANDSAVING YOUR MONEY. IT WILL HELP YOUMAKE YOUR MONEY WORK FOR YOU.
Tips Keep track of everything that you spend for threemonths to set
a realistic budget. Pay yourself first. Save 10% of your income.
Housing should not exceed 35% of your net income(rent/mortgage 25%,
utilities 10%) 8. Budgeting Continued... Carefully plan your
spending to live on what you earn (net income minus
expenses/saving). Before spending, always ask yourself, is this a
want or a need? Your values will influence your spending. Avoid
going into debt. 9. Assignment... Rework a Budget. First take the
information provided to you to set up Rachaels budget. Next rework
Rachaels budget to fit your personal lifestyle. Turn in the
completed budgets by the end of class time. 10. Rachels Story Works
part-time at a clothing store and part-timeat a restaurant. The net
monthly income from herfirst job is $600 and from the second $800.
Her planned fixed expenses are: $200 for rent(shared apartment with
two friends), $175 for carpayment, $220 for car insurance. Her
planned flexible expenses are: $100savings for trade school, $150
for food, $40 forgas and oil, $50 for clothes, $60 for
entertainmentand $30 for personal items. 11. How Her Month Actually
Went: She made an extra $75 in tips this month at therestaurant.
Her rent went up to $225 starting this month andher car payment
went up to $175 Her monthly car insurance premium, as of thismonth
went up to $295. Her flexible expenses actually were: $190 forfood,
$60 for gas and oil, $34 for newclothes, $220 for car repairs, $80
for runningshoes, $70 for entertainment, $60 for personalitems, $36
for a birthday present. Unforeseen events: two speeding tickets for
$230 12. What Does Her Budget Look LikeNow? What is the difference
between Rachels plannedexpenses and her actual expenses? In what
areas did she overspend? In what areas did she spend less than
sheplanned? How much did she spend for the use of her carthis
month? How much money did she have at the end of themonth to put
into savings? 13. If It Were Your Budget What would you change
about the budget? How much would you save each month to put toward
your personal and financial goals?
