• Failing to financially plan? Planning to
• What is the worst financial decision that you
have made in your life?
• What important financial decisions and
purchases will you have to make in the next
• Are these wants or needs?
• What things do you need to consider in order to
achieve these financial goals?
• What job will I have?
• How much can I afford to save or pay each month?
• Do I need a loan? Can or should I get a loan?
• Do I have a co-signer?
• Where will I live?
• Can I afford to go to school?
• Should I start and RRSP or RESP?
• How much support will be available from my
• How can we be sure that our income will cover our
• Have a plan
• Keep track of expenses
• Create a budget
• Look closely at areas where cuts can be made in expenses
• Use a calendar to schedule bill payments/pay cheques
• Use a list for items to buy and stick to it!
• Shop when there are good sales
• Consider needs versus wants
• Reduce entertainment costs
• Pay in cash
• The most important thing that you can do to
achieve your financial goals is to have a plan
for your money...this is called a BUDGET
• Budget-A plan for spending and saving your
money. It will help you make your money
work for you.
• Keep track of everything that you spend for three
months to set a realistic budget
• Pay yourself first. Save 10% of your income.
• Housing should not exceed 35% of your net income
(rent/mortgage 25% utilities 10%)
• Carefully plan your spending to live on what you earn
(net income minus expenses/savings)
• Before spending, always ask yourself, is this a want or
a need? Your values will influence your spending.
• Avoid going into debt.
• Rework a Budget Assignment
– First take the information provided to you to set
up Rachael’s budget.
– Next rework Rachael’s budget to fit your personal
• Submit the completed budget’s by the end of class