Budgeting Day 1 Understand the purpose of cash

Budgeting: Day 1 Understand the purpose of cash flow planning. Identify changes in personal spending behavior that contribute to wealth building. • •

Day 1 Timeline: Warm Up: 5 min. Video 1. 1: 10 min. Video 1. 2: 5 min. Key Terms: 15 min. Inequality for All: 20 min. Warm-up: Explain how budgeting helps you save money.

Key Terms Budget: A written cash flow plan Cash Flow Statement: A summary that shows total income and spending for a given time period Carbon Check: A copy of each check you write Envelope System: Series of envelopes that are divided into categories (food, entertainment, gas, etc. ) and are used to store cash for planned monthly expenses Impulse Purchase: An item that is bought without previous planning or consideration of the long-term effects Overdraft: Occurs when money is withdrawn from a bank account and the available balance goes below zero Reconcile: To match your bank statement with your checkbook Zero-Based Budget: A cash flow plan that assigns an expense to every dollar of your income, wherein the total income minus the total expenses equals zero

Budgeting: Day 2 • Develop a filing system for keeping financial records, both paper and electronic. • Describe how to use different payment methods and banking features.

Day 2 Timeline: Warm Up: 5 min. Video 2. 1: 10 min. How to Manage Your Checking Account Activity Pt. 2: 15 min. o Partners 1, 2, 3 Cool Down: 5 min. Inequality for All: 10 min. Warm-up: Why is it important to have a cash flow plan?

How to Write a Check Date: Month, Day and Year Pay to the order of: This is the person or business you are writing the check to. Dollar Box: This is the numerical amount of the check you are writing. Dollars Line: The written out amount of the check. For example: $108. 34 would be written as: One Hundred Eight and 34/100 s For: What the check is being written for, such as account numbers, cable bill, electric bill, groceries, etc. (This is optional. ) Signature

1, 2, 3 Cool Down 1. One sentence that summarizes the main idea of today’ s lesson. 2. Two of the most important details. 3. Three questions related to the lesson to quiz your classmates.

Budgeting: Day 3 Define zero-based budget. Develop a plan for spending and saving that has both long-term and short-term components. •

Day 3 Timeline: Warm Up: 5 min. Video 3. 1: 10 min. Mr. Le. Peau’s Budget: 5 min. Student Budget Activity: 35 min. Warm-up: How can changing your spending behavior contribute to wealth building?

Student Budget Activity Directions: Use the budget form or the budgeting tool located on foundations. U. com to create three zero-based budgets: one for each student described on the following slides and a personal one based on your income (this may include a regular allowance from your parents) and expenses. Fill in all income and expenses on the form with the information provided. Remember to compute net pay by taking 20% out for taxes.

Marcus Case Study Marcus, a high school student, works at a lumberyard making $10. 50 an hour. With his academic and sports schedule, he is able to work 25 hours a week. He can pick up extra hours, but not consistently. Marcus lives at home, so he has very few bills. He is responsible for his cell phone bill, which is $65 a month. He pays for his auto insurance, which is $1, 200 a year, and he pays for gas, maintenance and repairs on his car. Lastly, Marcus is responsible for his spending money. He has a fully funded emergency fund of $500 but has a goal of saving additional money for new tires. (As a high school student, assume that groceries, health insurance and utilities are expenses covered by his parents. )

Jenna Case Study Jenna works at the grocery store and earns $9 an hour. She is busy with extracurricular activities and only works 20 hours during the week. However, she picks up an eight-hour Sunday shift once a month, for which she earns time and a half. Jenna also lives at home and has health insurance under her mom’s plan. She is expected to pay for her own car repairs, maintenance and gas, as well as her auto insurance, which costs $1, 000 a year. Jenna wants to take a trip to Mexico with her friends next year, which will cost $1, 500.

Your Budget Create a zero-based budget based on your own income (may include allowance or part-time job).

Budgeting: Day 4 • Analyze how changes in circumstances can affect a personal budget.

Day 4 Timeline: Warm Up: 5 min. Video 3. 2: 15 min. Family Reality Check Activity: 30 min. Four Corners Cool Down: 5 min. Warm-up: Describe how changes in income or expenses affect your personal budget. Income Expense s

Budgeting: Day 5 • Assess student learning through test.

Day 5 Timeline: Warm Up: 5 min. Chapter 3 test: 30 min. Inequality for All: 20 min. Warm-up: Explain why it is important to maintain financial records.