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Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Creating My Lifestyle Budget
Career Portals
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Copyright
Copyright © Texas Education Agency, 2014. These Materials are copyrighted © and trademarked ™ as the property of the
Texas Education Agency (TEA) and may not be reproduced without the express written permission of TEA, except under the
following conditions:
1) Texas public school districts, charter schools, and Education Service Centers may reproduce and use copies of the
Materials and Related Materials for the districts’ and schools’ educational use without obtaining permission from TEA.
2) Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials for individual
personal use only, without obtaining written permission of TEA.
3) Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and unchanged in any way.
4) No monetary charge can be made for the reproduced materials or any document containing them; however, a reasonable
charge to cover only the cost of reproduction and distribution may be charged.
Private entities or persons located in Texas that are not Texas public school districts, Texas Education Service Centers, or Texas
charter schools or any entity, whether public or private, educational or non-educational, located outside the state of Texas
MUST obtain written approval from TEA and will be required to enter into a license agreement that may involve the payment of
a licensing fee or a royalty.
For information contact: Office of Copyrights, Trademarks, License Agreements, and Royalties, Texas Education Agency, 1701 N.
Congress Ave., Austin, TX 78701-1494; phone 512-463-7004; email: copyrights@tea.state.tx.us.
Copyright © Texas Education Agency, 2014. All rights reserved. 2
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Budget
A plan for spending money
Copyright © Texas Education Agency, 2014. All rights reserved. 3
Why is it necessary to have a plan for spending money? Have students brainstorm the need for a plan to spend money.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Create a Personal Budget Based on Your Selected Lifestyle
Copyright © Texas Education Agency, 2014. All rights reserved. 4
In this lesson you will:
Today we will create a budget based upon the lifestyle you have chosen.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Components of a Budget
Copyright © Texas Education Agency, 2014. All rights reserved. 5
There are several components of a budget that are important to know. Some of the components of a budget are the rent/mortgage payment, utilities, savings, transportation and groceries.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Slide 6
Copyright © Texas Education Agency, 2014. All rights reserved. 6
Here is an example of a budget that you may want to plan out.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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There are numerous ways to spend your money. Here are a few examples of categories you may need to include in your budget planning.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Savings
Why save?
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Money put away into savings are important because it gives you a security blanket to fall onto when the unexpected happens. The general rule of thumb is to save about 3-6 months salary in case you lose your job, or you are unable to work.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Why Save?
Emergencies
Specific goals (vacation, tuition)
Retirement
????
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Other than for emergencies, savings can also be used for specific goals, such as vacations, tuitions, birthdays, celebrations and retirement. Can you think of any other reasons to save money?
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Mortgage/rent
What is the difference between a mortgage payment and a rent payment?
What is a down payment?
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What is the difference between a mortgage payment and a rent payment? Ask for volunteers to look up the differences. The major difference between a mortgage and a rent payment is money that is spent on rent is not applied to investment into a property like a mortgage payment. Eventually, one can own a home that mortgage is being paid toward. However, individuals who pay a rent payment will never own the property. What are the pros and cons of each? Have students brainstorm the answers in groups or pairs. What is a down payment? A down payment is an initial payment made toward a large purchase.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Utilities:
• Electricity
• Water
• Cable
• Phone Service
• Internet Service
• Can you think of others?
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Utilities are extra expenses associated with owning or renting a home that are separate from the mortgage or rent payment. Sometimes apartment complexes include some utilities, such as water, in the rent payment. What are some other utilities that are not listed?
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Transportation:
• Bus pass
• Car payment
• Car insurance
• Gasoline
• Car maintenance
• Yearly registration
• Inspection Sticker
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Whether you use public transportation, or a personal vehicle, you will incur transportation costs. While a personal vehicle may seem like the cheaper option over the long term, it has many costs some people may be unaware of, such as car insurance, gasoline, car maintenance, registration and inspections.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Child Care Expenses
• Formula
• Diapers and Clothing
• Medical expenses
• Day Care fees
• Private vs. Public education
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Children demand or need a large part of a person’s household budget because as they grow, they have many expenses. Some of the expenses include new clothes, food, regular doctor’s visits, day care and more. What other expenses do children have?
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Medical/Insurance Expenses
• Prescriptions
• Medical/Dental Expenses
• Medical/Dental Insurance (often provided by employers)
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The rising costs of medical care is becoming a burden to some Americans. This means that Americans have more reasons to budget expenses to accommodate the costs of medications, doctor office co-pays, insurance premiums and more.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Groceries/Household Needs
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In addition to the many expenses a person must allocate funds for, groceries and household items need to be accounted for as well. Everyone will need to do household cleaning, although it may not be a desired chore. And, of course, we all eat food; therefore groceries need to be figured into the budget. What could result if a family did not budget for meals?
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Clothing/Personal Products
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Clothing should be budgeted for also, even though you may not shop for clothing every month. Toiletries and other personal care products should be budgeted for each month too.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Entertainment
• Movies
• Concert tickets
• Dining Out
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Be sure to allow for an entertainment budget also. This would include items such as going to concerts, athletic events, movies or dining out. Why might it be hard to stick to an entertainment budget? What are the benefits of creating an entertainment budget?
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Other Categories
• Child support
• Student Loans
• Pets
• Gym membership
• Charity/Donations
• Can you think of others?
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All budgets should be unique to the individual’s household. What might you include that we have not discussed today?
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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YOUR TURN
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Now it is your turn to complete a personal budget.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Slide 21
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Complete the budget based upon the amount of money you plan to spend in each category.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Copyright © Texas Education Agency, 2014. All rights reserved.22
Complete the budget based upon the amount of money you plan to spend in each category.
Presentation Notes Creating My Lifestyle Budget
Presentation Notes: Creating My Lifestyle Budget Copyright © Texas Education Agency, 2014. All rights reserved.
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Resource and References
Images:Microsoft Office Clip Art: Used with permission from Microsoft.
Copyright © Texas Education Agency, 2014. All rights reserved. 23
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