Money Management

• Budgeting - process of creating a plan to spend your money
• Budget - spending plan of using available money to satisfy goals
• Budget - estimate of income for a certain length of time and the plan for using it
• Budget - plan of expenditures and savings
• Importance of Budget

  • will help you control spending
  • ensure maximum satisfaction and returns
• A good budget should include savings; savings help you meet emergency situations.
• Nature of Income and Expenses

  • How can I get the money I need?
  • How can I manage it to attain my goals?
• Sources of Money

  • Allowance
  • Earnings from part-time job
  • Gifts (in form of money)
  • Interests from bank savings
• Allowance - define amount of money received regularly, either weekly/monthly
• 2 Types of Expenses

  • Fixed
  • Variable
• Fixed - items that you must pay regularly
• Vairable - items that you want but not necessarily need
• A well-planned budget is base on cleanly defined goals. (things that you need/want)
• Types of Goals

  • Short term
  • Long term
• Guidelines in Preparing a Budget Plan

  • Establish your goals
  • List down your income including unexpected items like gifts of money
  • Enter all your week's expenses: the fixed & variable expenses. Include an amount for your savings
  • Add your expenses & compare them with your income
  • Record your expenses & your spending every week
  • Make an assessment of your plan