Budget to Save —Developing a Budget

In the ClassroomInteractive Lessons

Lesson 2

0

2 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Instructional Objectives

Students will:

• Analyze personal goals to determine related and necessary financial goals.

• Devise personal goals for a variety of time frames and develop related financial goals.

• Gather data and use it to analyze personal spending.

• Develop a budget that allows personal saving.

3 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

How to Get an “A”

Achieving a goal requires making a plan.

• Make a plan that is specific.

• Make a plan that is action-oriented.

4 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Smart Goals

• Specific

• Measurable

• Attainable

• Relevant

• Timely

5 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Setting Goals

Cost of purchase: $2500

Cost of gas: $25/week

Cost of insurance: $100/month

Cost of plane ticket: $500 (due at booking)

Cost of hotel: $400

Cost of food and souvenirs: $300

6 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Setting Goals

Cost of tuition: $3600

Cost of meal plan: $250/month

Cost of television: $500

Cost of cable: $40/month

7 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Setting Goals

Cost of deposit: $500

Cost of rent: $350/month

Cost of utilities: $150/month

Cost of phone: $300

Cost of new data plan: $30/month

8 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Setting Goals

Personal

6-month goals

Financial

9 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Setting Goals

Personal

1-year goals

Financial

10 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Setting Goals

Personal

5-year goals

Financial

11 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Setting Goals

Personal

10-year goals

Financial

12 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Sonya

13 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Gabby

14 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

A budget allows you to:

15 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

To develop a budget you need to:

16 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Sam’s Monthly Budget

Sources of income Current income

Part-time job (net pay) $ 580

Lunch money from parents 80

660Total income

Spending categories Current expenses

Eating out at lunch ($6 per school day) $ 120

Total expenses $

$

660

Current savings

Available to save (Income – Expenses) $ None

80Movie night with friends (once a week)

50Dinner with friends (once a week)

20Football games and snacks

140Car insurance

90New clothing

Gas 140

Soft drink from vending machine (per school day) 20

17 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Financial Decision-making

18 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Sam’s Monthly Budget

Sources of income Current income Income changes New income

Part-time job (net pay)

Lunch money from parents

Total income

Spending categories Current expenses

Eating out at lunch ($6 per school day) $ 120

Total expenses $

$ 580

80

660$

$

$

$ 580

80

660$

660

Current savings

Available to save (Income – Expenses) $ None $

New savings

$

80Movie night with friends (once a week)

50Dinner with friends (once a week)

20Football games and snacks

140Car insurance

90New clothing

Gas 140

Soft drink from vending machine (per school day) 20

$

$

$

$

Spending changes New expenses

19 Building Wealth—Lesson 2 Federal Reserve Bank of Dallas

Assessment

undefined_2: undefined_3: PersonalRow1: FinancialRow1: PersonalRow1_2: FinancialRow1_2: PersonalRow1_3: FinancialRow1_3: PersonalRow1_4: FinancialRow1_4: undefined_4: undefined_5: 80: fill_23: 80_2: 80_3: 50: 50_2: 20: 20_2: 140: 140_2: 90: 90_2: 140_3: 140_4: 20_3: 20_4: fill_24: fill_21: fill_25: fill_22: Getting an A: Text5: Text6: