A personal budget is a financial plan that allocates future income toward expenses, savings, and debt repayment. “Where does the money go?” is a common dilemma faced by many individuals and households when it comes to budgeting and money management. Effective money management starts with a goal and a step-by-step plan for saving and spending. Financial goals should be realistic, be specific, have a timeframe, and imply an action to be taken. This lesson will encourage students to take the time and effort to develop their own personal financial goals and budget
1 Learning Objectives
- Identify and prioritize some of your personal and financial goals
- Identify the steps you can take and the resources you will need to achieve your goals
- Identify and examine your current spending behaviors and patterns
- Understand what it means to budget, and identify the reasons to maintain a budget
- Create and maintain a personal budget that supports your personal and financial goals
2 Budget Video
3 Budgeting Concepts and Strategies
phase 1: Assess your personal and financial situation (needs, values, life situation).
phase 2: Set personal and financial goals.
phase 3: Create a budget for fixed and variable expenses based on projected income.
phase 4: Monitor current spending (saving, investing) patterns.
phase 5: Compare your budget to what you have actually spent.
phase 6: Review financial progress and revise budgeted amounts.
Will-written personal and financial goals SHOULD:
A student working part-time is not likely to be able to afford a new car every couple of years.
“I want to save $5,000 for a down payment to buy a house.”
“I want to pay off my credit card within the next 18 months.”
“I want to start an automatic deposit savings account with monthly withdrawals from my