Budgeting
Money Management
THE BASIC ECONOMIC
PROBLEM:
Limited Resources
And
Unlimited Wants And Needs
FINANCIAL
PLANNING STEPS:
Set Goals
Analyze Information
Create A Plan
Implement The Plan
Monitor and Modify
The Plan
(Evaluate)
Set New Goals
(Continue Process)
FINANCIAL
PLANNING
PROCESS
DECISION-MAKING
PROCESS
Set Goals
Identify the Goal
Analyze
Informatio
n
Create A
Plan
Gather
Information
Analyze
Outcomes
Examine
Alternatives
Implement
the Plan
Alternative
Choices
Monitor
and Modify
the Plan
Make A
Decision
Set New
Goals
Set New
Goals
Evaluate
Results
MY SMART GOALS Worksheet For
Short-Term, Medium-Term and Long-Term.
Complete Two Goals For Each Time Frame.
1.Short-Term-achievable in 0-3 months.
2.Intermediate or Medium-Term-achievable in 3-12 months.
3.Long-Term-achievable from 1 year or greater.
Achievement
Date
Timeline
(Short,
Intermediate,
Or Long-Term)
Estimated
Cost
Buy Christmas
Presents
12/25/05
Short
$200
$67 [200/3]
Beach Trip
07/04/06
Intermediate
$500
$18 [500/28]
Down payment on
car
08/05/07
Long
$1000
$12 [1000/84]
Specific Goal
Amount to
Save Per
Week
n
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s
:
$
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$
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Balance Sheet
is helpful in setting goals when budgeting
Cash Flow Statement
is helpful in establishing budget categories
Balance Sheet
Assets
Liabilities
Checking account
500.00
Home mortgage
50,000.00
Savings account
2,000.00
Credit card balance
300.00
Home
$90,000.00
Loan
$2,000.00
Automobile
5,000.00
Furniture
$6,000.00
Total Liabilities
$52,300.00
Computer
$1,500.00
Jewelry
$1,000.00
Owner’s Equity
Total Assets minus
Total Liabilities
$53,700.00
Total Assets
$106,000.00
Total Liabilities
And Owner’s Equity
$106,000.00
Personal Cash Flow Statement
Monthly Cash Inflows (Income)
Net Income (take home pay)
$1,500.00
Other Income (interest)
Total Income
$30.00
$1,530.00
Monthly Cash Outflows (Expenditures)
Savings
Rent
$150.00
$400.00
Food
$350.00
Clothing
$50.00
Electricity/Gas
$90.00
Telephone
$30.00
Car
$250.00
Personal Expenses
$20.00
Entertainment
$50.00
Total Savings and Expenditures
$1,390.00
Net Cash Flow
$140.00
Budget
•a plan for saving and spending
•helps achieve financial goals
•helps avoid credit problems
•must be evaluated from time to time
•is essential for consumers, businesses and governments
occur regularly
same amount each time
differ each time
Monthly Budget
Get a NEFE High School Financial
Planning Guide [yellow books near
the phone].
 Turn to Unit Three
 You are to read page 27 – 32.
 Don’t complete any of these
worksheets, we’ll do them together
in class.
