Community Money Advice’s

Budget Coaching Training

Objectives Understand the basic principles of budgeting

Help a family to draw up a budget

Recognise when it is necessary to engage in support

Ensure the budget accurately reflects the client’s lifestyle

Understand the importance of sustainability

Know what information will be needed to draw up a budget

Know how to maximise income & minimise expenditure

Appreciate the difficulties of living on a tight budget

Know what tools are available to assist budgeting

Be able to explain the benefits of budgeting

Understand when it is necessary to revise a budget

Know about Basic bank accounts & how to obtain them

Be able to draw up a budget!!!!

Why Budget?

Helps them stay in control

Helps anticipate future problems

Helps plan for regular areas of expenditure

Helps reduce stress

Protects family relationships

Prevents future debt issues

33% of the population of Britain don’t have any savings at all

How does budgeting help?

When should a budget be revisited or revised?

70% of family breakdowns are due to problems/conflicts in the area of money

Some answers to why it is necessary to budget & when should a budget be

revisited

It helps them to stay in controlIt gives an accurate picture of where the money goesPotential problems can be identified earlyPriority expenditure can be highlighted and metIt reduces the build up of debtImpulse buying is reducedThe issues of giving & saving can be discussed

A change in family circumstancesChange in working hours

Illness/bereavementLarge purchases need to be made

Older children leaving homeNew children coming along

Moving homeRegular review such as annually

How do you budget?

Exercise 1 Document Checklist

List what documents might be necessary and relevant to assist your client in producing an accurate budget

Exercise 2 Working Through a Calendar

Think of your own household and use the Calendar sheet to fill in the important financial dates. Allocate amounts for these based on what you think you may spend then total them up for the year and divide by 12 to give a monthly amount

Exercise 3 Income & expenditure streams

List regular streams of income and expenditure and their frequency based on your household including those already identified in Exercise 2

Maximising income & minimising expenditure

Think of ways that could be looked at to

increase a household’s income

Think of areas that could be looked at to reduce expenditure

Giving, Savings, Christmas & Birthdays

How much would you allocate towards each category?

How would you discuss each of these categories with someone who has a completely different idea to you

What tips can you give to those who haven’t saved before?

Most UK families will spend between £530 and £682 on gifts, decorations, food and drink at Christmas this year

Exercise 4 Drawing up the final budget

Use your current financial situation and the information from Exercises 2 and 3 to fill in the CMA budget sheet

Exercise 5 Deficit budget

Your client may be have deficit where expenditure exceeds the incomeUsing your own budget sheet look at ways in which your family’s items of expenditure can be reduced, where savings can be made and your income increased, if possible

Ongoing support when helping clients to

budget Agree a regular review period

Be there to listen and help when difficulties arise

Have a directory of support services you can refer to

Encourage communication within the couple/family

Discourage further borrowing especially from family members

Support them to keep going

Continually encourage honesty & realism in expenditure levels

Resources & websites

There are a wide variety of resources available that can be downloaded from CMA’s website that complement the training and used as aids when assisting your clients with budgeting

There are also a number of useful website links at the back of your manual that are worth looking at