Budgeting. Budgeting Quiz

Transcription

1 Groups/Tier 3/Handout 1 Budgeting Quiz At the grocery store, you can save money by buying: - Pre-seasoned meat - Pre-cubed meat - Plain cuts of meat Will having a loyalty card get you in debt? Yes / No Which of the following is NOT a smart way to stay on budget? - Delay paying off credit card debt - Make a grocery list - Use cash Pay as You Go mobiles are cheaper than Contracts True / False What is a discretionary expense? - An expense that you may or may not need depending on your situation - An expense you want but don't need - An expense you need but don't want De-icing your freezer reduces electricity bill? Yes / No In case you lose your job tomorrow, about how much should you have saved in your emergency fund? - Enough to live comfortably for 2-3 days? - Enough to live comfortably for 2-3 weeks? - Enough to live comfortably for 2-3 months? It s easier to budget if I pay my utility as and when, rather than bothering with a Direct Debit Yes / No

2 Weekly spending diary Groups/Tier 3/Handout 2 Outgoings Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total

3 Groups/Tier 3/Handout 3 How do I convert between weeks, months and years? Converting weeks into months? Times by 52 Divide by 12 Converting month into years? Times by 12 Converting years into months? Divide by 12 Converting months into weeks? Times by 12 Divide by 52 Converting years into weeks? Divide by 52 Converting weeks into years? Times by 52

4 Groups/Tier 3/Handout 4 Budgeting for a family of four You get paid 1250 per month after tax and national insurance, and including all benefits. How are you going to spend it?! Before you rush to the shops, let s look at what bills you already know about - Rent per month Mobile Phone Bill - 5 per week Gym Membership - 25 per month Water bill 400 per year Gas bill 780 per year Electric bill 440 per year Council Tax 1250 per year TV License 145 per year Internet, phone and TV per year 500 per month And now let s look at what other things you may buy Food per week Cinema Going out with friends per week Video Games per year Make-up and hair-dressing per week Buses and trains per week Clothes per week So the COMBINED TOTAL you spend is per month So do you have any money left over? Or did you need to borrow some? What changes can you make to make sure you don t need to borrow any money? Use a red pen, and see what numbers you want to adjust: what can you do without?

5 Groups/Tier 3/Handout 5 Budgeting when living alone You get paid 700 per month after tax and national insurance, including all your benefits. How are you going to spend it?! Before you rush to the shops, let s look at what bills you already know about - Rent per month Mobile Phone Bill - 5 per week Gym Membership - 25 per month Water bill 400 per year Gas bill 780 per year Electric bill 440 per year Council Tax 1250 per year TV License 145 per year Internet, phone and TV per year 300 per month And now let s look at what other things you may buy Food per week Cinema Going out with friends per week Video Games per year Make-up and hair-dressing per week Buses and trains per week Clothes per week So the COMBINED TOTAL you spend is per month So do you have any money left over? Or did you need to borrow some? What changes can you make to make sure you don t need to borrow any money? Use a red pen, and see what numbers you want to adjust: what can you do without?

6 Groups/Tier 3/Handout 6 Budgeting for a single parent with a small child You get paid 840 per month after tax and national insurance, including all benefits. How are you going to spend it?! Before you rush to the shops, let s look at what bills you already know about - Rent per month Mobile Phone Bill - 5 per week Gym Membership - 25 per month Water bill 400 per year Gas bill 780 per year Electric bill 440 per year Council Tax 1250 per year TV License 145 per year Internet, phone and TV per year 400 per month And now let s look at what other things you may buy Food per week Cinema Going out with friends per week Video Games per year Make-up and hair-dressing per week Buses and trains per week Clothes per week So the COMBINED TOTAL you spend is per month So do you have any money left over? Or did you need to borrow some? What changes can you make to make sure you don t need to borrow any money? Use a red pen, and see what numbers you want to adjust: what can you do without?

7 Groups/Tier 3/Handout 7 Budgeting for a retired person You get paid 625 per month in pension and benefits. How are you going to spend it?! Before you rush to the shops, let s look at what bills you already know about - Mobile Phone Bill - 5 per week Water bill 400 per year Gas bill 780 per year Electric bill 440 per year Council Tax 1250 per year TV License 145 per year Internet, phone and TV per year And now let s look at what other things you may buy Food per week Going out with friends per week Make-up and hair-dressing per week Buses and trains per week Clothes per week So the COMBINED TOTAL you spend is per month So do you have any money left over? Or did you need to borrow some? What changes can you make to make sure you don t need to borrow any money? Use a red pen, and see what numbers you want to adjust: what can you do without?

8 Groups/Tier 3/Handout 8 What should I do? I get paid 980 per month (after tax and national insurance), and including all my benefits. This is how I spend it. Rent per month Mobile Phone Bill - 5 per week Gym Membership - 25 per month Water bill 400 per year Gas bill 780 per year Electric bill 440 per year Council Tax 1250 per year TV License 145 per year Internet, phone and TV per year 450 per month 20 per month 25 per month And now let s look at what other things I buy Food 60 per week per month Cinema 12 per month per month Going out with friends 40 per week per month Video Games 120 per year per month Make-up and hair-dressing 10 per week per month Buses and trains 15 per week per month Clothes 20 per week per month per month So the COMBINED TOTAL I spend is per month What changes should I make to make sure I don t need to borrow any money? Use a red pen, and see what numbers you can adjust: what should I do without?

9 Groups/Tier 3/Handout 9 For the next 7 days I will - Pick any FOUR of the following as your NEW One Week Resolutions Take out a loyalty card Pay cash and ask for a discount Use Charity shops/second hand shops/car boot sales Buy services (like travel passes) in advance Set up a Universal credit profile online Find out what sort of bank account I have Check online how universal credit will change my benefits Find out exactly how much my utility bills are Compare energy suppliers Visit one of the websites recommended in the handouts Open all unopened letters Tidy up my old bills and papers Keep a spending diary for a week Try one of the online budget planners Try filling in a blank budget for myself Try to identify ways to reduce my personal bills in the future. Where can I go next? Go to Adviceguide.org.uk, and try the budgeting tool! Try the Money Saving Expert Demotivator Try the Money Advice Service s Budget Planner Try the Turn2Us Benefits Calculator Go to adviceguide.org.uk How to work out your budget

10 Groups/Tier 3/Handout 10 Feedback How you felt at the start We d really like to know if you felt this session helped you. For each question, mark ONE box to show where you were at the START of the session. You understand the need for a monthly budget. You see the usefulness of a spending diary. You can apply budgeting skills to your life on a monthly time-scale. You are more confident making a basic budget. You know how to reduce your outgoings and increase your income.

11 Groups/Tier 3/Handout 11 Feedback How you feel at the end We d really like to know if you felt this session helped you. For each question, mark ONE box to show where you were at the END of the session. You understand the need for a monthly budget. You see the usefulness of a spending diary. You can apply budgeting skills to your life on a monthly time-scale. You are more confident making a basic budget. You know how to reduce your outgoings and increase your income.