Chapter 4 Financial Decisions and Planning What Is

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Chapter 4 Financial Decisions and Planning

Chapter 4 Financial Decisions and Planning

What Is the Purpose of Budgeting? • A budget is a spending and saving

What Is the Purpose of Budgeting? • A budget is a spending and saving plan. • It is based on estimated income and expenses. • Use spreadsheet software to prepare a budget. 4 -2 Basics of Budgeting Slide 2

How Do You Prepare a Budget? • Step 1: Estimate income • Step 2:

How Do You Prepare a Budget? • Step 1: Estimate income • Step 2: Plan savings • Step 3: Estimate expenses o Variable expenses o Fixed expenses o Charitable giving • Step 4: Balance the budget 4 -2 Basics of Budgeting Slide 3

Personal Budget Income Work (part-time) Allowance for household chores Lunch money allowance Savings account

Personal Budget Income Work (part-time) Allowance for household chores Lunch money allowance Savings account interest Total income Weekly Monthly Yearly $30. 00 15. 00. 50 $55. 50 $120. 00 40. 00 60. 00 2. 00 $222. 00 $1, 440. 00 480. 00 720. 00 24. 00 $2, 664. 00 $ 5. 50 $ 22. 00 $ 264. 00 Gifts Clothes and shoes Loan payment to parents Lunches Entertainment/miscellaneous Total expenses $ 5. 00 15. 00 10. 00 $50. 00 $ 20. 00 60. 00 40. 00 $200. 00 $ 240. 00 720. 00 480. 00 $2, 400. 00 Total savings and expenses $55. 50 $222. 00 $2, 664. 00 Savings Deposit to savings account Expenses 4 -2 Basics of Budgeting Slide 4

Focus On. . . Philanthropy • • Philanthropy is a form of charitable giving.

Focus On. . . Philanthropy • • Philanthropy is a form of charitable giving. It supports a societal cause. It often lasts for an extended period of time. It is the primary source of funding for the fine arts, performing arts, and most religious and humanitarian causes. 4 -2 Basics of Budgeting Slide 5

Success Skills Dealing With Conflict • Stop and take a ten-second time out. o

Success Skills Dealing With Conflict • Stop and take a ten-second time out. o Ask “what is happening here? ” o Listen rather than talk. • Suggest that you continue your talk later. • Focus on the problem, not the person. • Be objective. • Be willing to compromise when appropriate. 4 -2 Basics of Budgeting Slide 6