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Budget PowerPoint

Budget PowerPoint. Career Preparedness Dr. Gibson. Spending Plan. A spending plan is a way to prepare in advance for planned purchases and to have sufficient funds on hand for unexpected expenses.

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Budget PowerPoint

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  1. Budget PowerPoint Career Preparedness Dr. Gibson

  2. Spending Plan • A spending plan is a way to prepare in advance for planned purchases and to have sufficient funds on hand for unexpected expenses. • To create a spending plan, you need to first identify the expected costs and savings goals and then figure out how to cover those costs (expenses) with money earned from jobs received as allowance (income).

  3. Budget • A budget is a plan for managing your money during a given period of time. It can be as simple as a list of money coming in and money going out and then subtracting the two. A budget is a tool to help you manage your money (cash). • Budget should detail exactly how you’re • going to use your money to pay for the things you want and need. An effective • spending plan not only multiplies your chances of success, it also helps make the • journey faster and easier.

  4. Budget • Almost 60 percent of millionaires use a budget to manage their money. • A spending plan helps you manage your cash flow so you have the money to pay for the things you need (and want).

  5. My Income • What kinds of income do you normally receive throughout the year? • Are there certain times when you seem to earn or get more money than usual? • What are some predictions you can make about your income this year based on what you’ve earned before?

  6. Balancing Act, ONE SIDE: Income • Paychecks from a job • »» Your allowance • »» Payment for odd jobs such as baby-sitting or yard work • »» A gift card or cash for your birthday • »» Social Security, disability, or unemployment benefits • »» Proceeds from selling your stuff • »» Interest earned on a savings account

  7. Michael’s and Selena’s incomes during the school year are listed in the following chart.

  8. BALANCING ACT, THE OTHER SIDE: EXPENSES • Expenses are what you spend • money on. Use your spending log to see what you have spent in the past to predict what you might spend in the future.

  9. Expenses • Expenses can be classified into three types: • Fixed expenses cost the same every time—often a set monthly payment. • Variable expenses are common expenses where the amount is different each time, such as paying for groceries or gas. • Periodic expenses arise occasionally during the year, usually less than once a month. School fees and trip expenses are examples

  10. Debt • Rights and responsibilities—debt is a legal contract, can sue in court if one party defaults. • If your credit card is stolen, report it immediately and your legal obligation will only be $50 • will be much higher if you don’t report it • How to get out from under excessive debt • spend less than you earn • Step 1: List all Income amounts and get a total • Step 2: List all Expense amounts and get a total • Step 3: From total income subtract total expenses • Step 4: Analyze resulting amount • If Income – Expenses is a positive number, then you have a surplus. • If Income – Expenses is a negative number, then you have a deficit.

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