Money Matters 1
Introductions
• Instructor and student introductions
• Module overview
Money Matters 2
Student Introductions
• Your name
• Expectations, questions, and concerns
about budgeting
Money Matters 3
Purpose
Money Matters will help you:
• Get a handle on how you spend your
money.
• Prepare and follow a personal spending
plan or budget.
Money Matters 4
Objectives
By the end of this course, you will be able to:
• Track daily spending habits.
• Prepare a personal spending plan or
budget to estimate monthly income and
expenses.
Money Matters 5
Objectives (Continued)
• Identify ways to decrease spending and
increase income.
• Identify budgeting tools that will help you
manage your money.
Money Matters 6
Agenda and Ground Rules
• One hour long
• One 10-minute break
• Training methods
• Class participation
Money Matters 7
Budget
A step-by-step plan for meeting expenses in
given period of time.
Also called a “personal spending plan.”
Money Matters 8
Benefits of Budgeting
• Reduces money-related anxiety.
• Gives you control of your financial
situation.
• Helps you build assets to improve your
quality of life.
Money Matters 9
How to Prepare a Budget
1. Track daily spending.
2. Determine income and expenses.
3. Find ways to decrease spending.
4. Find ways to increase income.
Money Matters 10
Daily Spending Diary
Day What did I spend my money on today?
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Money Matters 11
Income
• Wages • Interest
• Public assistance • Dividends
• Child support • Social security
• Alimony • Other sources
Money Matters 12
Gross vs. Net Income
Gross income = Total income
without deductions
Net income = Gross income
minus SS, taxes,
other deductions
Money Matters 13
Social Security Benefits
Social Security covers:
• Retirement
• Disability
• Family
• Survivors
• Medicare benefits
Money Matters 14
Social Security Statement
A record of:
• Your earnings.
• Social Security taxes you have paid during
your working years.
• Estimate of monthly retirement, disability,
and survivor benefits.
Money Matters 15
Fixed vs. Flexible Expenses
Fixed expenses = Expenses with
amounts that don’t
change from month to
month.
Flexible expenses = Expenses with
amounts that may
change from month to
month
Money Matters 16
Tax Credits
• Earned Income Tax Credit (EITC).
• Child tax credit.
• Credit for Child and Dependent Care
Expenses.
• Education credits.
• Tax credits for retirement savings
contributions.
Money Matters 17
Recordkeeping Tips
• Keep records in a safe place.
• Keep files organized.
• Keep tax records for at least 3 years.
• Send your bill payments before they are
due.
Money Matters 18
Budgeting Tools
• Monthly payment schedule
• Monthly payment calendar
• Expense envelope system
• Budget box system
• Computer system
Money Matters 19
Monthly Payment Calendar
Month - _______
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1 2 3 4 5 6 7
$2,000 pay check $160 $800
$100-savings transportation child support $1,000
$40-food rent
$150-personal
8 9 10 11 12 13 14
$25-savings
15 16 17 18 19 0 21
$40 $200
phone bill credit card
22 23 24 25 26 27 28
$550
child care
29 30
Money Matters 20
What To Pay First
• Rent or mortgage
• Utilities
• Food
Money Matters 21
Loan Payment Decisions
• Pay off loans with the highest interest rate
first.
• Talk to your creditors.
• Get credit counseling.
• Enroll in a debt management plan.
• Consider bankruptcy only as a last resort.
Money Matters 22
Practice Exercise: Budget
Considerations
Instructions:
• Read the scenario.
• Answer the questions.
• Be prepared to explain your answers.
Money Matters 23