Topics Covered in the 2006-2007 Newsletter

                Here is a sample list of topics that will be covered in the 2006 - 2007
                editions of our newsletter. Keep in mind this is a review course and 
                each topic will be covered.

Sample Newsletter - Creating a Budget

III. Topic of the Week - Creating a budget

A budget is the most common form of money management. It
is a plan that shows the allocation of available or projected
financial resources that would be available in a specific
time period.

Budgets are designed to cover  a specific amount of time, 
such as a week, month, quarter, annually and sometimes 
over years.

To prepare a budget correctly a person should estimate the
amount of income they will receive (over a specific time period)
and then allocate their expenses against the amount of available
resources. Available resources can include cash, investment
income and credit which could be real money (in hand) or 
projected.

A family budget may include line items such as: Mortgage /
Rent, Electricity, Natural Gas, Water / Sewer, Trash Collection,
Telephone, Cell Phones, Cable TV, Internet Connection,
Insurance, Credit Cards, Loans, Transportation, Automobile,
Groceries, Lunch / Dinner, Laundry, Entertainment or
Miscellaneous.

A list of expenses should be compiled using accurate numbers
and projections and then allocated against the proper amount of
money to cover costs. Individuals and businesses should recognize
the difference between fixed and variable expenses while planning
a budget.

Fixed expenses are those that do not change from month to
month, they are expected and reoccur each month. Examples 
may be a mortgage or loan payment, rent, and insurance premiums.
Variable expense are those that could change from month to month,
or may not occur every month, examples include credit cards 
premiums, gifts and car expenses.

Balancing a budget means that the expenses or money spent
will be equal or less than the amount of resources available to use.

Who uses a budget? Businesses large and small, city and towns,
families and individuals use budgets to manage their money.

********************

Each week we will suggest a method on how to teach the topics
that we discuss.  When teaching budgets, we suggest emphasizing
how learning and practicing good money management skills will
be beneficial to their professional careers, as well as in their own 
financial well being.

We suggest opening a discussion about budgets as a money 
management tool.  

Discussion Points:

• Ask your child if they understand what a balanced 
  budget is, as it relates to your city or town.

• Discuss how a budget helps a person set goals.

• Talk about what could happen if your school goes
  over budget (i.e. layoffs, fewer school supplies).

• Discuss the concept of not spending more money
  than you earn, or you could go into debt.

• Explain how a budget helps keep a person or company
  within their financial limits.

• Have your child make a list of companies, people or 
  organizations who would use a budget.

********************

To help children understand the importance of budgeting 
Introduction to comparison shopping

• Worksheet

• Pencil

• Calculator (if allowed)

• Internet

• Reading

• Problem solving

• Math Computation

• Comparison shopping

• Internet Research

• Discussion

Step 1.

Discuss with your children the idea of taking a family vacation.
Have them brainstorm different destinations of where they
would like to go. 

Step 2.

Research the desired locations using a travel web site such as
(http://www.travelocity.com or http://www.southwest.com).

Step 3.

Once you have determined the location that you would like
to go to, price out the airfare, hotel and rental car for a one
week's stay.  Then price out the cost of the same vacation 
starting 12 weeks from today.

Once you have completed your research, prepare a budget to
go on vacation based on the total number of people going.

                        Today             12 weeks from today

Air fare             _____             _____

Rental Car         _____             _____

Gasoline            _____             _____

Lodging             _____             _____

Entertainment     _____             _____

Meals                 _____             _____

Transportation    _____             _____

Tips                    _____            _____

Taxes                 _____             _____

T-shirts / Gifts     _____             _____

Miscellaneous     _____             _____

Total                   ____             _____

Step 4.

Questions:

1. What is the cost for you and your family to go on
vacation, today and twelve weeks from today?

2. What causes the difference in price?

3. How long would it take for you to save for this vacation
if your family put aside $30 each week?

Thank you for being a subscriber!
Enjoy the rest of your week.

Timothy Liptrap
VP, Education and Development