1. SESSION # 1
What is a Budget?

2. WHAT IS A BUDGET?
• A budget is a plan to spend your money
• Budgets help us ensure we will always
have money for the things we need or
want

3. WHO USES A BUDGET?
•EVERYONE
•It doesn’t matter how much
money you have!

4. DO YOU THINK YOU BUDGET
WELL?
•Let’s find out!

5. 1st RULE OF
BUDGETING
SPEND LESS THAN YOU
EARN!

6. KEY COMPONENTS OF A BUDGET
•INCOME: All forms of earnings
• Pay cheques, child support, disability payments,
pensions, public assistance, unemployment, gifts
• All money that goes IN to your bank account

7. KEY COMPONENTS OF A BUDGET
•EXPENSES: All forms of payments
• All money going OUT of your bank account

8. EXPENSES
•Fixed Expenses: Payments that stay
the same every month
• Example: rent, mortgage payment

9. EXPENSES
• Variable Expenses: Payments that change
from month to month
• Example: utilities, groceries, gas, child
care

10. EXPENSES
•What is considered an expense?

11. EXPENSES
Rent Daycare Hair cuts/personal care
Home phone Bus pass Clothing
Cell phone Car insurance Gifts
Water Vehicle maintenance (oil
changes, etc.)
Entertainment, alcohol,
lottery
Hydro Gas Home/renter insurance
Gas Validation sticker renewal Laundry
Cable Medical Care: prescriptions,
dental care, eye glasses
Food
Internet Cigarettes Infant/child care
accessories

12. Can anyone think of any other
possible expenses that aren’t on this
handout?

13. EXPENSES
•Let’s make some lists of YOUR
expenses

14. EXPENSES
• In the table provided make a list of all of YOUR
expenses
• You don’t need to add the amounts just yet
• Only list the name of the expenses you have

15. INCOME
• What is considered to be income?

16. INCOME
Pay Cheque Child support
Social Assistance Alimony
GST rebates Baby bonus
Canada Pension Plan
(CPP)
Withdrawal from
investments such as
RRSP, RESP, etc.

17. INCOME
• Can you think of any other sources of
income that you might receive?

18. INCOME
•Let’s make a list of your incomes

19. INCOME
•In the chart provided, list the
names/categories of income you
receive
• You don’t need amounts yet

20. INCOME VS. EXPENSES
•Budgeting is a balancing act
•The goal is for our income to be
higher than our expenses

21. INCOME VS. EXPENSES
•Let’s make a prediction:
• When we add the actual dollar
amounts to our charts do you think
your income will be higher than
your expenses?

22. QUESTIONS??

23. LEARNING ACTIVITY 1
• Write 1 paragraph describing your current
spending habits:
• How do you budget your money now?
• What are you hoping to learn?
• What do you already know?

24. NEXT CLASS:
• Bring in copies of your bills, pay cheques,
etc.
• We are going to create a budget