This presentation was produced and is copyrighted by Stewart- Peterson®, Inc. 2003-2005. Permission is granted for use by active AgEdNet.com® subscribers. All other use is prohibited.

STEWART-PETERSON and AGEDNET.COM are registered trademarks of Stewart-Peterson, Inc.

AB122 Making Personaland Family Budgets

Business Library

Why have a budget anyway?

• A budget can be used to make a spending plan and determine whether it has a good chance of working.

• A budget can also be used as a guide in carrying out your plan in a way that will improve the chancesthat it will work.

Start with your personal budget:

• Where does your spending money come from?

• How will you spend that money next week, next month, next year?

• Use your budget to reach important goals.• Do more spending on things

that are the most importantto you.

Mary’s example:

• Mary is a high school student who wants to attend college.

• Her income includes part-time work and an allowance.

• Her expenses include school lunches and supplies, clothingand entertainment

What Mary includes in her budget:

• Part-time work during school hours

• Full-time summer work

• Sets aside vacation time with no income

• Estimates of expenses

• Setting aside money for savings for college

Planning a family budget …

• More complicated than a personal budget

• Prevents overspending

• Helps you get started in saving to meet future goals

A family budget example:

• John works full-time.• Ethel is a homemaker and works part-

time.• There are two children

in the family.• The family wants to

save money for collegefor the children.

How the family plans their budget:

• Expected earnings

• Expenses• Taxes• Food and beverage• Housing and utilities• Transportation• Insurance and retirement• Entertainment and personal expenses• Savings

The bottom line:

• Making a budget is not difficult.• It gives you some time to think about getting the

most out of the funds you have available.• You can plan a personal budget now.• Once you are out of school and get a full-time

job, your budget will be even more important.• You can use a budget to make decisions on

how you can save for the things you want to buy and do.

This presentation was produced and is copyrighted by Stewart- Peterson®, Inc. 2003-2005. Permission is granted for use by active AgEdNet.com® subscribers. All other use is prohibited.

STEWART-PETERSON and AGEDNET.COM are registered trademarks of Stewart-Peterson, Inc.

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