Adult Education Final

Introduction 3 minutes-

What is a budget?- A system that allows you to plan for your income and expenses over the

course of a set period of time.

What is the purpose of a budget?- It is a way to keep track of the money you getting and the

money you are spending.

Kristina Ellis from Dave Ramsey explains “To put it simply: When you don’t have a budget,

you’re not in control of your money. A budget is like a game plan, and when you don’t have a

game plan, you’re more likely to lose the game. I want you to win with money. You may not be

completely on your own yet, but there are still several expenses you need to be prepared for as a

college student. That’s where the budget comes into play.” (Ellis, 2023)

Reflection Question: What do you spend your money on?

Setting up and maintaining a budget 6 minutes-

1. Estimate your income

2. Estimate your expenses, to include:

Fixed regular monthly expenses- Car payment, Mortgage, Rent

Fixed irregular expenses- Taxes, Home Expenses

Flexible monthly expenses- Groceries, entertainment, and clothes

“Mad money” – Emergency money or impulsive purchases

 3. Estimate your future expenses

Begin by keeping a record of everything you spend, What are your financial goals and your plans

for obtaining those goals?

4. Cope with change

Plan for new situations, Plan for changing conditions that increase or decrease your expenses

5. Keep your personal and financial goals in mind

Set money aside to help meet financial goals

6. Balance your budget

It is also key to understand the differences between your wants and your needs. You need to

plan out your needs and then the excess funds can go to your wants.

Categorizing Expenditures 4 minutes-

Have the students help brain storm what items go under what categories when making a budget.

Write down categories and move the items to match with the categories.

Categories are savings, food, entertainment, personal, education, and health. The graphic below

can help you to get ideas for the categorizing.

 Key Words

Income- Money received, especially on a regular basis, for work or through investments

Expenses- The cost required for something; the money spent on something.

Fixed Expenses- Expenses that are not often or easy to change

Flexible Monthly Expenses- Expenses that are easily changed, reduced, or eliminated.

Fixed Irregular Expenses- These pop up less frequently through the year

Mad Money- a small sum of money carried or kept in reserve for minor expenses, emergencies,

or impulse purchases

Financial Goals- the objectives or targets that individuals or businesses set for their financial

future

Budget- A system that allows you to plan for your income and expenses over the course of a set

period of time
 1. Estimate your ____________________________

2. Estimate your ____________________________, to include:

Fixed regular ________________________ expenses- Car payment, Mortgage, Rent

Fixed ______________________ expenses- Taxes, Home Expenses

______________ monthly expenses- Groceries, entertainment, and clothes

“Mad money” – Emergency money or ________________________ purchases

3. Estimate your __________________________ expenses

Begin by keeping a record of everything you spend, What are your financial goals and your plans

for obtaining those goals?

4. ______________________ with change

Plan for new situations, Plan for changing conditions that increase or decrease your expenses

5. Keep your ________________________and ________________________ goals in mind

Set money aside to help meet financial goals

6. ____________________________ your budget

It is also key to understand the differences between your wants and your needs. You need to

plan out your needs and then the excess funds can go to your wants.
INCOME

HEALTH

PERSONAL
 FOOD

ENTERTAINMENT

UTILITIES
 SAVINGS

TRANSPORTATION

EDUCATION
SALARY/WAGES

INTERESTS

SIDE HUSTLES

INVESTMENTS

RENT/MORTGAGE

REPAIR/MAINTENANCE

PROPERTY TAXES

RENTER FEES

INSURANCE CLIFE, HEALTH, DENTAL/VISION) GYM

PRESCRIPTIONS

VACATIONS

SUBSCRIPTIONS

CRAFTS/HOBBY/GIFTS

DONATIONS

MOVIES/CONCERTS/ETC
RETIREMENT FUNDS

INVESTMENTS

EMERGENCY FUNDS

SHORT TERM SAVINGS

DEBT

STUDENT LOANS

CREDIT CARDS

MEDICAL BILLS

PERSONAL LOANS

GROCERIES

EATING OUT

SNACKS

ELECTRICITY/POWER

WATER/SEWER

GAS
TRASH

INTERNET/PHONE

CAR PAYMENT

AUTO INSURANCE

FUEL

MAINTENANCE/REPAIR

PARKING/TAXI/FEES

TOILETRIES

BEAUTY

CLOTHING

PET CARE

ELECTRONICS

TUITION/FEES

SUPPLIES & BOOKS EXTRACURRICULAR

ACTIVITIES