BUDGETING 1

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BUDGETING: WHAT, HOW, WHEN, AND WHY

• WHAT: To plan expenditures for everyday life

• HOW: WE WILL SHOW YOU!

• WHEN: Everyone should always have a budget whether money is an issue or not; emergencies can happen anytime

• WHY: Everything requires money and it feels good to know limits and set boundaries

KEEP IN MIND• Income

• Expenditures

• Needs vs. Wants

• Future expenditures

• Emergencies

• Short term and Long term

STATISTICS

• Average Debt of graduating College Students: $26,600

• Average Credit Card Debt: $15,185

• Average Mortgage Debt: $147,133

• Young adults are most likely to go bankrupt than any other age groups

• Average yearly income per house hold: $50,054

Monthly Ideal (Estimated)

Monthly Actual

Rent $170.00 $170.00

Utilities (cable, gas) $90.00 $92.40

Car Gas $35.00 $68.00

Food $100.00 $143.00

Clothing, Toiletries $30.00 $50.00

Other expenditures $5.00 $10.00

Ideal Total Actual Total

$430.00 $533.40

CONSEQUENCES

•Don’t have enough money to pay for next month’s rent/utilities/ or school tuition?•Don’t forget about late fees

•No money for emergencies

•Don’t forget about bankruptcy or low credit score

TIPS• Online Banking

• Keep your Budget somewhere close

• Wait a week before making “want” purchases that are over $15.00

• Make an allowance for yourself

THINK ABOUT THE FUTURE

Things to keep in mind • Unexpected Hospital/car/house/technology bills or loss of

income• Future marriage plans• Paying off student loans