Effective Budgeting and Savings Strategies for Students and Young Adults

 
Budgeting and Savings
A financial literacy program for
students and young adults
 
A Budget is
 
a written record of the
money that flows in and
out of your household (or
pocket) each month
 
Why Budget?
 
Achieve Financial Goals
More Financial Freedom
Avoid costly borrowing
Reduce Stress
 
How Do You Start?
 
Write down all the
money that comes in
and EVERYTHING you
spend money on
 
Creating a Budget
 
Track your expenses
How much do you have to spend?
How much do you REALLY spend?
Things you spend on that aren’t
necessary?
 
Monthly Tracking
Needs 
(Essential Expenses)
Expenses you need to live
Wants
  
(NON-Essential Expenses)
Expenses you DO NOT need to live
 
Know the Difference
between Needs and Wants
 
TRUE 
or
 
FALSE
A budget is a written record of the
money you have coming in (called an
"inflow") and going out (called an
"outflow")
 
TRUE
A budget is a written record of
the money you have coming in
(called an "inflow") and going
out (called an "outflow")
What are the inflows and outflows
of a budget called?
What are the inflows and outflows
of a budget called?
Income (Inflows)
Expenses (Outflows)
Which refer to a “NEED?”
a.
Not necessary
b.
Something you really want
c.
Absolutely required to live
d.
Something you can live without
Which of these is a “NEED?”
a.
Not necessary
b.
Something you really want
c.
Absolutely required to live
d.
Something you can live without
How do you start tracking expenses?
a.
Review bank statements
b.
Log expenses regularly
c.
Use MINT and online services
d.
All of the above
How do you start tracking expenses?
a.
Review 
b
ank statements
b.
Log expenses regularly
c.
Use MINT and online services
d.
All of the above
Let’s:
1. create a budget and
2.
 
label the expenses as
    “needs” and “wants.”
 
FIXED Expenses
vs.
Variable Expenses
 
There are
TWO Types of Expenses
 
Needed (Essential)
FIXED Expenses
 
Rent or Mortgage
Insurance (auto or home)
Car Payments
Taxes
School Loans
Other debt (including credit cards)
 
Needed (Essential)
VARIABLE Expenses
 
Car Maintenance
Utilities (Gas, Electric,
Water, Garbage)
Food
Phone
Medical/Rx
 
Wants (NON-
Essential) Expenses
 
Non-Essential Clothing
Pets
Gym
Entertainment
Video/Media
Other items you want but
don’t need
 
Balancing Income
and Expenses
 
At the end of the month,
is Income > Expenses?
(Do you have money left over?)
Yes!  Great, you can save
  
   what’s left over!
NO!  There’s a problem!
 
*Spend Less Than You Make!
 
An Unbalanced Budget
Brings Trouble
 
Income < Expenses
Not saving
Borrow Money = costly
Not pay people you owe
Income = Expenses
Not saving
Avoid borrowing costs
 
Are Expenses too
High for your Income?
 
What can you cut out?
Determine how much
you should save
What expenses are easy to predict?
a.
Fixed Expenses
b.
Variable Expenses
c.
Both
What expenses are easy to predict?
a.
Fixed Expenses
b.
Variable Expenses
c.
Both
In what situations can you start saving?
a.
Income = Expenses
b.
Income > Expenses
c.
Income < Expenses
d.
All of the above
In what situations can you start saving?
a.
Income = Expenses
b.
Income > Expenses
c.
Income < Expenses
d.
All of the above
What changes help saving?
a.
Increase Income
b.
Decrease Income
c.
Increase Expenses
d.
Decrease Expenses
What changes help saving?
a.
Increase Income
b.
Decrease Income
c.
Increase Expenses
d.
Decrease Expenses
 
GOAL:  Income > Expenses
 
How to Save
 
Pay yourself first by
setting aside money from
every paycheck
Automatic withdrawals
from your paycheck
Easy
Effective
 
Financial Goals
(Identify and Write Down)
 
Vacation and travel
College
Downpayment for car
Downpayment for a house
Avoid Debt
Pay off credit card debt
Pay off student loans
 
Different Types of
Financial Goals
 
Short-Term
Medium-Term
Long-Term
 
The Tricks to Setting
Financial Goals
 
Specific
Realistic
Written Down
 
Setting Goals
Takes MATH
Goal:
Buy $1,000 Computer in 12
months
Solution:  $1,000/12 = $83
Is saving $83/month 
REALISTIC?
*  Calculating interest on borrowed money is
more complex and
requires more money
 
Where to Put Your
Savings
 
Short Term (cash to spend)
Bank account
E-pay account
Medium-Term Goals (cash to buy)
Interest-paying bank account
Long-Term Goals (retirement)
Retirement Plan
Investment account
What are some characteristics
of effective goals?
a.
Specific
b.
Realistic
c.
Written Down
d.
All of the above
What are some characteristics
of effective goals?
a.
Specific
b.
Realistic
c.
Written Down
d.
All of the above
Why Budget?
Why Budget?
Achieve Financial Goals
More Financial Freedom
Avoid costly borrowing
Reduce Stress
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Explore the importance of budgeting, tracking expenses, distinguishing between needs and wants, and understanding inflows and outflows in a budget to achieve financial goals, gain financial freedom, and reduce stress. Start your journey towards responsible financial management today!


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  1. Budgeting and Savings Instructor: www.getkahoot.com Students: www.kahoot.it PIN: XXXX

  2. Budgeting and Savings A financial literacy program for students and young adults

  3. A Budget is a written record of the money that flows in and out of your household (or pocket) each month

  4. Why Budget? Achieve Financial Goals More Financial Freedom Avoid costly borrowing Reduce Stress

  5. How Do You Start? Write down all the money that comes in and EVERYTHING you spend money on

  6. Creating a Budget Track your expenses How much do you have to spend? How much do you REALLY spend? Things you spend on that aren t necessary?

  7. Monthly Tracking

  8. Know the Difference between Needs and Wants Needs (Essential Expenses) Expenses you need to live Wants(NON-Essential Expenses) Expenses you DO NOT need to live

  9. TRUE or FALSE A budget is a written record of the money you have coming in (called an "inflow") and going out (called an "outflow")

  10. TRUE A budget is a written record of the money you have coming in (called an "inflow") and going out (called an "outflow")

  11. What are the inflows and outflows of a budget called?

  12. What are the inflows and outflows of a budget called? Income (Inflows) Expenses (Outflows)

  13. Which refer to a NEED? a. Not necessary b. Something you really want c. Absolutely required to live d. Something you can live without

  14. Which of these is a NEED? a. Not necessary b. Something you really want c. Absolutely required to live d. Something you can live without

  15. How do you start tracking expenses? a. Review bank statements b. Log expenses regularly c. Use MINT and online services d. All of the above

  16. How do you start tracking expenses? a. Review bank statements b. Log expenses regularly c. Use MINT and online services d. All of the above

  17. Lets: 1. create a budget and 2. label the expenses as needs and wants.

  18. There are TWO Types of Expenses FIXED Expenses vs. Variable Expenses

  19. Needed (Essential) FIXED Expenses Rent or Mortgage Insurance (auto or home) Car Payments Taxes School Loans Other debt (including credit cards)

  20. Needed (Essential) VARIABLE Expenses Car Maintenance Utilities (Gas, Electric, Water, Garbage) Food Phone Medical/Rx

  21. Wants (NON- Essential) Expenses Non-Essential Clothing Pets Gym Entertainment Video/Media Other items you want but don t need

  22. Balancing Income and Expenses At the end of the month, is Income > Expenses? (Do you have money left over?) Yes! Great, you can save what s left over! NO! There s a problem! *Spend Less Than You Make!

  23. An Unbalanced Budget Brings Trouble Income < Expenses Not saving Borrow Money = costly Not pay people you owe Income = Expenses Not saving Avoid borrowing costs

  24. Are Expenses too High for your Income? What can you cut out? Determine how much you should save

  25. What expenses are easy to predict? a. Fixed Expenses b. Variable Expenses c. Both

  26. What expenses are easy to predict? a. Fixed Expenses b. Variable Expenses c. Both

  27. In what situations can you start saving? a. Income = Expenses b. Income > Expenses c. Income < Expenses d. All of the above

  28. In what situations can you start saving? a. Income = Expenses b. Income > Expenses c. Income < Expenses d. All of the above

  29. What changes help saving? a. Increase Income b. Decrease Income c. Increase Expenses d. Decrease Expenses

  30. What changes help saving? GOAL: Income > Expenses a. Increase Income b. Decrease Income c. Increase Expenses d. Decrease Expenses

  31. How to Save Pay yourself first by setting aside money from every paycheck Automatic withdrawals from your paycheck Easy Effective

  32. Financial Goals (Identify and Write Down) Vacation and travel College Downpayment for car Downpayment for a house Avoid Debt Pay off credit card debt Pay off student loans

  33. Different Types of Financial Goals Short-Term Medium-Term Long-Term

  34. The Tricks to Setting Financial Goals Specific Realistic Written Down

  35. Setting Goals Takes MATH Goal: Buy $1,000 Computer in 12 months Solution: $1,000/12 = $83 Is saving $83/month REALISTIC? * Calculating interest on borrowed money is more complex and requires more money

  36. Where to Put Your Savings Short Term (cash to spend) Bank account E-pay account Medium-Term Goals (cash to buy) Interest-paying bank account Long-Term Goals (retirement) Retirement Plan Investment account

  37. What are some characteristics of effective goals? a. Specific b. Realistic c. Written Down d. All of the above

  38. What are some characteristics of effective goals? a. Specific b. Realistic c. Written Down d. All of the above

  39. Why Budget?

  40. Why Budget? Achieve Financial Goals More Financial Freedom Avoid costly borrowing Reduce Stress

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