Date post: | 20-Jun-2015 |
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Education |
Upload: | robyn-cook-ritchie |
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SESSION # 1What is a Budget?
WHAT IS A BUDGET?
• A budget is a plan to spend your money
• Budgets help us ensure we will always have money for the things we need or want
WHO USES A BUDGET?
•EVERYONE• It doesn’t matter how much
money you have!
DO YOU THINK YOU BUDGET WELL?
•Let’s find out!
1st RULE OF BUDGETING
SPEND LESS THAN YOU EARN!
KEY COMPONENTS OF A BUDGET
•INCOME: All forms of earnings• Pay cheques, child support, disability payments,
pensions, public assistance, unemployment, gifts• All money that goes IN to your bank account
KEY COMPONENTS OF A BUDGET
•EXPENSES: All forms of payments• All money going OUT of your bank account
EXPENSES
• Fixed Expenses: Payments that stay the same every month• Example: rent, mortgage payment
EXPENSES• Variable Expenses: Payments that change
from month to month• Example: utilities, groceries, gas, child
care
EXPENSES•What is considered an expense?
EXPENSESRent Daycare Hair cuts/personal care
Home phone Bus pass Clothing
Cell phone Car insurance Gifts
Water Vehicle maintenance (oil changes, etc.)
Entertainment, alcohol, lottery
Hydro Gas Home/renter insurance
Gas Validation sticker renewal Laundry
Cable Medical Care: prescriptions, dental care, eye glasses
Food
Internet Cigarettes Infant/child care accessories
Can anyone think of any other possible expenses that aren’t on
this handout?
EXPENSES•Let’s make some lists of YOUR expenses
EXPENSES• In the table provided make a list of all of YOUR
expenses• You don’t need to add the amounts just yet• Only list the name of the expenses you have
INCOME•What is considered to be income?
INCOMEPay Cheque Child supportSocial Assistance AlimonyGST rebates Baby bonus
Canada Pension Plan (CPP)
Withdrawal from investments such as RRSP, RESP, etc.
INCOME• Can you think of any other sources of
income that you might receive?
INCOME• Let’s make a list of your incomes
INCOME• In the chart provided, list the
names/categories of income you receive• You don’t need amounts yet
INCOME VS. EXPENSES•Budgeting is a balancing act• The goal is for our income to be
higher than our expenses
INCOME VS. EXPENSES• Let’s make a prediction:•When we add the actual dollar
amounts to our charts do you think your income will be higher than your expenses?
QUESTIONS??
LEARNING ACTIVITY 1
•Write 1 paragraph describing your current spending habits:• How do you budget your money now?•What are you hoping to learn?•What do you already know?
NEXT CLASS:• Bring in copies of your bills, pay cheques,
etc.•We are going to create a budget