Budgets
Jan 17, 2018
Budgets
What is a Budget?A budget is a written document or electronic file that helps
you take control of your personal financesThe goal of a budget is to identify how much money you make
(net income) and then you subtract it from your expenses (things you need to spend money on)
It is an excellent money management tool that helps you achieve your financial goals. It is especially important in the following situations:
BudgetsIf you find money is tight
If you don’t know where your money is going
If you are having problems paying off your debtsIf you don’t save regularly
If you want to find ways to make your dollar stretch even further
Making a BudgetMake a list of all the necessities that you think are
important to include in a budget.
What do you think is important to have in a budget?
Detailed List of Budgetary Items for Avg. Family• Houses (rent vs owning) • Car vs bus pass • Gasoline
• Food • Clothing • Heat
• Water • Municipal Taxes • Housing Insurance
• Phone • Television • Internet
• Extra Curricular Activities
• Entertainment – movies, video games, dinners, opera, theatre and etc...
• Health Care Costs – MSP, Dental, Medication, Toiletries
• Maintenance Repairs - at living accommodation
• Savings • Student Loans
HOUSING$370
$700 - 1800
$700 - $1000
• At home w/ parents
• Bachelor Suite/1 Br Apartment
• Share 2 Br Apartment w/ roommate
*Average monthly costs for BC youth after high school in the Lower Mainland
TRANSPORTATION$1957
$402
$156
• New Car – (Loan, Insurance, Gas)
• Used Car - (Loan, Insurance, Gas)
• Public Transit
*Average monthly costs for BC youth after high school in the Lower Mainland
FOOD$431
$193
$35
• Buy at Grocery Stores
• Occasional eating out (Dine out / Take out)
• Beverages
*Average monthly costs for BC youth after high school in the Lower Mainland
UTILITIES$69
$54
• Electricity
• Natural Gas
*Average monthly costs for BC youth after high school in the Lower Mainland
COMMUNICATIONS
*Average monthly costs for BC youth after high school in the Lower Mainland
• Landline Phone $27
• Cell Phone $85
• Internet $46
• Cable $51
• Bundle (Phone, Internet & Cable)
$118
CLOTHING
$166
$90
• Women• Men
*Average monthly costs for BC youth after high school in the Lower Mainland
(Clothing, Footwear & Accessories)
HEALTHCARE$42
$37
$41
$23
• Medications (prescriptions)
• Medications (non-prescriptions)
• Dental Services• Eye-care Goods &
Services
*Average monthly costs for BC youth after high school in the Lower Mainland
INSURANCE$51
$4 - 15
• Medical Premiums
• Apartment
Content
*Average monthly costs for BC youth after high school in the Lower Mainland
ENTERTAINMENT $33
$46
$83
$61
• TV, Video, Audio Equipment
• Pro Sporting event (1x)
• Concert (1x)• Nightclubs/pubs (2x)
*Average monthly costs for BC youth after high school in the Lower Mainland
ENTERTAINMENT • Health Club fees• Sport Fees &
Equipment• Lessons
$34$59
$17
*Average monthly costs for BC youth after high school in the Lower Mainland
PERSONAL $35
$86$27$23
• Hair Grooming• Manicures• Makeup• Personal Care (soap,
shampoo, etc..)
*Average monthly costs for BC youth after high school in the Lower Mainland
Monthly Budget Exercise You work 40 hours per week at minimum wage ($10.45 per hour)
Expenses – Housing, Transportation, Utilities, Food, Clothing, Health Care, MSP Insurance, Housing Insurance, Personal Care (Toiletries), Communications, Entertainment, Savings.
In pairs (or group of three) identify how much money you would spend for each expense per month.
Then use the computers (in pairs), download the “1. budget template” from my website and fill it out accordingly.