Budgeting and Money

Management

How to set up a budget?

• Budget- plan for saving and spending your income

1. Determine your income

2. Track your expenses

3. Categorize Expenses

4. Set up a plan and stick to it!

Budget Breakdown

• A well planned budget is suggested to include these percentages:

• Fixed expenses = 60%

• Savings = 20%

• Retirement = 10%

• Fun = 10%

Bank Accounts

• Checking Accounts• Minimum balance requirements

• Overdraft fees – when you spend too much

• Banks require multiple forms of ID, SS #, proof of residency, etc

The Cost of Accounts

• Bank accounts are not free!

• Banks sometimes charge for checks, online banking, etc

• Require minimum monthly deposits or balances to stay open

• https://www.53.com/personal-banking/checking/

Accessing your Money

• ATM Only Cards

• Debit Cards

• Checks

• Online payments

Savings Accounts

• Standard savings accounts:• Require a relatively small deposit

• Require you to maintain a minimum balance

• Allows access to you money at any time

• Pays a very low interest rate –fee for using your money

• Average is 0.06%

Investing

• Money market accounts• Higher rate, limited access to funds

• CDs (Certificate of Deposit)• Highest interest rate, penalty to withdraw before maturity date

• Stock• Buying shares in a corporation, paid quarterly from profits

• 401(k) Plans• Worker invest tax-exempt money into a retirement plan

Keeping Track of Spending

• Keep receipts (especially donations)

• Have paychecks directly deposited

• Check monthly bank statements for errors

• Use online banking website/app – set up reminders and notifications

• Keep check registry up to date and use carbon copy checkbooks

• Stick to your budget!