Creating My Lifestyle Budget

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Kathleen Glenn
6 years ago
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1 Page1 Slide 1 Creating My Lifestyle Budget Career Portals :

2 Page2 Slide 2 Copyright Copyright Texas Education Agency, These Materials are copyrighted and trademarked as the property of the Texas Education Agency (TEA) and may not be reproduced without the express written permission of TEA, except under the following conditions: 1) Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the Materials and Related Materials for the districts and schools educational use without obtaining permission from TEA. 2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual personal use only, without obtaining written permission of TEA. 3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way. 4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable charge to cover only the cost of reproduction and distribution may be charged. Private entities or persons located in Texas that are not Texas public school districts, Texas Education Service Centers, or Texas charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas MUST obtain written approval from TEA and will be required to enter into a license agreement that may involve the payment of a licensing fee or a royalty. For information contact: Office of Copyrights, Trademarks, License Agreements, and Royalties, Texas Education Agency, 1701 N. Congress Ave., Austin, TX ; phone ; copyrights@tea.state.tx.us. 2 :

3 Page3 Slide 3 Budget A plan for spending money 3 Why is it necessary to have a plan for spending money? Have students brainstorm the need for a plan to spend money. :

4 Page4 Slide 4 In this lesson you will: Create a Personal Budget Based on Your Selected Lifestyle 4 Today we will create a budget based upon the lifestyle you have chosen. :

5 Page5 Slide 5 Components of a Budget 5 There are several components of a budget that are important to know. Some of the components of a budget are the rent/mortgage payment, utilities, savings, transportation and groceries. :

6 Page6 Slide 6 6 Here is an example of a budget that you may want to plan out. :

7 Page7 Slide 7 7 There are numerous ways to spend your money. Here are a few examples of categories you may need to include in your budget planning. :

8 Page8 Slide 8 Savings Why save? 8 Money put away into savings are important because it gives you a security blanket to fall onto when the unexpected happens. The general rule of thumb is to save about 3-6 months salary in case you lose your job, or you are unable to work. :

9 Page9 Slide 9 Why Save? Emergencies Specific goals (vacation, tuition) Retirement???? 9 Other than for emergencies, savings can also be used for specific goals, such as vacations, tuitions, birthdays, celebrations and retirement. Can you think of any other reasons to save money? :

10 Page10 Slide 10 Mortgage/rent What is the difference between a mortgage payment and a rent payment? What is a down payment? 10 What is the difference between a mortgage payment and a rent payment? Ask for volunteers to look up the differences. The major difference between a mortgage and a rent payment is money that is spent on rent is not applied to investment into a property like a mortgage payment. Eventually, one can own a home that mortgage is being paid toward. However, individuals who pay a rent payment will never own the property. What are the pros and cons of each? Have students brainstorm the answers in groups or pairs. What is a down payment? A down payment is an initial payment made toward a large purchase. :

Page11 Slide 11 Utilities: Electricity Water Cable Phone

11 Utilities are extra expenses associated with owning or

11 Page11 Slide 11 Utilities: Electricity Water Cable Phone Service Internet Service Can you think of others? 11 Utilities are extra expenses associated with owning or renting a home that are separate from the mortgage or rent payment. Sometimes apartment complexes include some utilities, such as water, in the rent payment. What are some other utilities that are not listed? :

Page12 Slide 12 Transportation: Bus pass Car payment Car insurance Gasoline Car maintenance Yearly registration Inspection Sticker 12 Whether you use public transportation, or a personal vehicle, you

12 Page12 Slide 12 Transportation: Bus pass Car payment Car insurance Gasoline Car maintenance Yearly registration Inspection Sticker 12 Whether you use public transportation, or a personal vehicle, you will incur transportation costs. While a personal vehicle may seem like the cheaper option over the long term, it has many costs some people may be unaware of, such as car insurance, gasoline, car maintenance, registration and inspections. :

13 Page13 Slide 13 Child Care Expenses Formula Diapers and Clothing Medical expenses Day Care fees Private vs. Public education 13 Children demand or need a large part of a person s household budget because as they grow, they have many expenses. Some of the expenses include new clothes, food, regular doctor s visits, day care and more. What other expenses do children have? :

Page14 Slide 14 Medical/Insurance Expenses Prescriptions

provided by employers) 14 The rising costs of medical care is

This means that Americans have more reasons to budget

14 Page14 Slide 14 Medical/Insurance Expenses Prescriptions Medical/Dental Expenses Medical/Dental Insurance (often provided by employers) 14 The rising costs of medical care is becoming a burden to some Americans. This means that Americans have more reasons to budget expenses to accommodate the costs of medications, doctor office co-pays, insurance premiums and more. :

Page15 Slide 15 Groceries/Household Needs 15 In addition to the

household items need to be accounted for as well.

15 Page15 Slide 15 Groceries/Household Needs 15 In addition to the many expenses a person must allocate funds for, groceries and household items need to be accounted for as well. Everyone will need to do household cleaning, although it may not be a desired chore. And, of course, we all eat food; therefore groceries need to be figured into the budget. What could result if a family did not budget for meals? :

16 Page16 Slide 16 Clothing/Personal Products 16 Clothing should be budgeted for also, even though you may not shop for clothing every month. Toiletries and other personal care products should be budgeted for each month too. :

Page17 Slide 17 Entertainment Movies Concert tickets

17 Page17 Slide 17 Entertainment Movies Concert tickets Dining Out 17 Be sure to allow for an entertainment budget also. This would include items such as going to concerts, athletic events, movies or dining out. Why might it be hard to stick to an entertainment budget? What are the benefits of creating an entertainment budget? :

18 All budgets should be unique to the individual s household.

18 Page18 Slide 18 Other Categories Child support Student Loans Pets Gym membership Charity/Donations Can you think of others? 18 All budgets should be unique to the individual s household. What might you include that we have not discussed today? :

19 Page19 Slide :

20 Page20 Slide 20 YOUR TURN 20 Now it is your turn to complete a personal budget. :

21 Page21 Slide Complete the budget based upon the amount of money you plan to spend in each category. :

22 Page22 Slide Complete the budget based upon the amount of money you plan to spend in each category. :

23 Page23 Slide 23 Resource and References Images: Microsoft Office Clip Art: Used with permission from Microsoft. 23 :

Presentation Notes Give Me Some Credit

Presentation Notes Give Me Some Credit Page1 Slide 1 : Page2 Slide 2 Copyright Texas Education Agency, 2014. These Materials are copyrighted and trademarked as the property of the Texas Education Agency (TEA) and may not be reproduced without