Financial First Aid

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Financial First Aid
An interactive Financial Education Program

• Facilitated by Ericka Cockrell

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Why Financial First First Aid

• ?

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Icebreaker

• Why did you choose to attend this session?

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Purpose

• How You Spend Your Money will help you
• Get a handle on how you spend your money
• Show you how to prepare and follow a personal
  spending plan or budget.
• Set realistic financial goals and stick to them

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Objectives

• By the end of the course, you will be able to
• Track daily spending habits.
• Prepare a personal spending plan or budget to
  estimate monthly income and expenses.
• Identify ways to decrease spending and increase
  income.
• Identify budgeting tools that will help you
  manage your money.

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Workshop Sequence

• 90 minutes long
• Open Discussion
• Activities
• Resources

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What is a

• B U D G E T

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Budget or Personal Spending Plan

• Simply put.
• A budget is a step-by-step plan for meeting
  expenses in a given period of time.

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Benefits of Budgeting

• Reduces money-related anxiety.
• Gives you control of your financial situation.
• Helps you build assets to improve your quality of
  life.

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How to Prepare a Budget

• There are four steps to preparing a budget
• 1. Keep track of your daily spending.
• 2. Determine what your monthly income and
  expenses are the month before they are due.
• 3. Find ways to decrease spending.
• 4. Find ways to increase income.

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Daily Spending Diary
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Tracking Alternatives

• Spending Diary
• www.spendingdiary.com
• Quicken Beam
• www.quickenbeam.intuit.com
• Quicken Online
• (www.quickenonline.com)
• Quicken Deluxe
• (quicken.intuit.com)

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Spending Diary- Online
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Spending Plan/Budget
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Determining income and expenses.

• Income
• Wages
• Public assistance
• Child support
• Alimony
• Interest
• Dividends
• Social security
• Other sources

• Expenses
• Fixed
• Variable
• Periodic
• Discretionary

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Gross Income vs. Net Income

• When creating your budget, ALWAYS base your
  budget on your NET income.

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Part Two

• 3. Find ways to decrease spending
• 4. Find ways to increase income

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Agenda

• Find ways to decrease spending
• Goal planning
• Group activity (decreasing spending)
• Increase income
• Tax credits
• Record keeping tips
• Budgeting Tools
• Payment Scheduling
• Payment calendar
• Budget Considerations

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Setting Financial Goals

• One of the first steps to financial security is
  planning and following through on a personal
  spending plan or budget. Budgeting is about
  choiceschoosing how to spend money and save
  money.

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Planning Your Goals
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Tax Credits

• Earned Income Tax Credit (EITC).
• Child tax credit.
• Credit for Child and Dependent Care
  Expenses.
• Education credits.
• Tax credits for retirement savings contributions.
  

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Recordkeeping Tips

• Keep records in a safe place.
• Keep files organized.
• Keep tax records for at least 3 years.
• Send your bill payments before they are due.

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Budgeting Tools

• Monthly payment schedule
• Monthly payment calendar
• Expense envelope system
• Budget box system
• Computer system

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Monthly Payment Calendar
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What To Pay First

• Rent or mortgage
• Utilities
• Food

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Loan Payment Decisions

• Pay off loans with the highest interest rate
  first.
• Talk to your creditors.
• Get credit counseling.
• Enroll in a debt management plan.
• Consider bankruptcy only as a last resort.

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Quick Money Moments

• Overview
• Intended use
• Target Audience
• Intended use

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Quick Money Moments
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Financial Education Competitive Grant

• 2009 Mentoring in Bloom
• Financial Education Grant Opportunity

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Questions

• Contact
• Ericka Cockrell
• Community Relations
• Ericka.cockrell_at_qchi.com