One of the First Steps to Financial Security Is Planning and Following Through on a Personal

One of the first steps to financial security is planning and following through on a personal budget. Budgeting is about choices – choosing how to make money and choosing how to spend money.

Why Budget?

Have you ever taken $20 out of the ATM and, at the end of the day, not known where it all went? It is critical to understand where your money goes.

Knowing what your income and expenses are every month will help you take control of your financial situation.
Taking control of your finances helps reduce the anxiety of not knowing whether you have enough money to pay the bills then they are due.
It is important to have a sense of control over money, rather than letting money have control over you.
Budgeting will help build assets. Building assets improves the quality of life for you and your family.

A good place to start taking control of your financial situation is to develop a savings and spending plan. This is called a budget. A budget is a step-by-step plan for meeting expenses in a given period of time.

How would keeping a budget improve your family’s life?

______

Where are you now?

Yes / Sometimes / Never/No
I have a checking account.
I know how much money is in my checking account.
I know how to write checks and make deposits and withdrawals.
I record my checks in the check register and keep a running balance.
I can balance my checkbook at the end of the month.
I understand compound interest in a savings account.
I comparison shop. I watch for sales and use coupons when I shop.
I make a weekly or monthly budget and stick to it.
I understand my paycheck stub.
I know how to use a calculator to add, subtract, multiply, and divide.
I have money set aside for emergencies.
I think before I spend money I hadn’t planned on spending.
I know how to calculate the amount of money I spend monthly on interest on credit cards and loans.
I know that I have to file tax returns for federal and state taxes by April 15 every year.
I understand my bank statement.
I understand the statements I receive for the bills I owe (i.e. credit card statement, cell phone bill, electric bill, water bill)
I know where I can go if I need help with my finances.
I am not afraid to ask for financial advice, when I need it.
I think of my child and our future when I plan my spending.
I keep good records of my finances.
I try not to borrow from or lend money to friends or family.
I know how to plan for big purchases.
My financial situation helps me to take care of my health and my child’s health.
I pay off my credit card balances every month.

Income

Fill in the sources and dollars per month your family receives in income. Update this worksheet if any additional sources are gained or if any sources of income are lost.

Sources of Income

Household Member / Job Title/Position / Dates From/To / Amount/month

Additional Income:

Type of Income / Household Member / Amount/Month
Child Support
Social Security or SSI
Disability
Unemployment
Social Security
Worker’s Compensation
Retirement/Pension
TANF
Food Stamps (SNAP)
Other

Total Monthly Income: $llllllllllllllllllllllllllllllllllll

Expenses

Rent/ House Payment...... $______

Homeowner’s/Renter’s Insurance...... $______

Natural Gas or Heating Fuels...... $______

Electricity...... $______

Water/ Trash Pick Up...... $______

Phone...... $______

Food...... $______

Snacks/ Meals Eaten Out...... $______

Transportation (car payment)...... $______

Car Insurance...... $______

Gas/Fuel...... $______

Medical Insurance/ Hospital Bills...... $______

Day Care...... $______

Child/Spousal Support...... $______

Pet Care...... $______

Clothing...... $______

Tithing/ Charitable Giving...... $______

Loans...... $______

Debt Payments/Credit Cards...... $______

Personal (toiletries, allowances, etc.)...... $______

Savings...... $______

Entertainment (anything not listed above)...... $______

Other (Specify): ______...... $______

Total Monthly Income: ...... $llllllllllllllllllllllllllllllllllll

Total Monthly Expenses: ...... $llllllllllllllllllllllllllllllllllll

Balance...... $llllllllllllllllllllllllllllllllllll

Set Priorities and Make Changes

Do you have money left over at the end of the month? Congratulations! If you treat money wisely (like putting it into savings), you will be well on your way to providing for your family’s needs and reaching your goals. But, maybe your expenses were more than your income. Then what? First, look carefully at how you spent the money.Too often our money takes a detour from our goals and we have to take steps to get back on track.

Getting back on track means two things: cutting back on expenses or increasing income (or both). Now that you know your expenses, it will be easier to cut them. Increasing income is another option you and your family members can consider. Some ideas include:

Looking for a better paying job (this may require improving work skills or getting more education)
Taking on a second job
Having other family members work and contribute to the household income
Turning a hobby into extra income

Make a Plan

Month: ______Year: ______

Expected Income: / Expected Expenses:
Employer/Assistance / Expected Income / Payday / Payee / Amount Due / Date to Pay
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
Total: / $ / Total: / $

Recording Your Expenses

Month: ______Year: ______

Actual Income: / Actual Expenses:
Employer/Assistance / Expected Income / Payday / Payee / Amount Due / Date to Pay
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
Total: / $ / Total: / $

Recording Your Expenses

DCDebit CardATMTeller Withdraw ADAutomatic DepositAPAutomatic Payment BPOnline Bill PayTBalance TransferTDTax Deductible

Number or Code / Date / Transaction Description / Payment, Fee, Withdraw(-) / Deposit, Credit (+) / Balance

Tips to Decrease Spending

Carry only small amounts of cash in your wallet so you won’t spend it.
Use direct deposit. You will be less likely to spend money if it goes straight into your account.
Control your use of credit cards or don’t use them at all.
Don’t go shopping just for fun.
Take your spending/savings plan with you as a reminder.
Buy only what you need(don’t buy things just because they are on sale).
Use coupons to save money on things you buy regularly.
Prevent impulse buying,use a shopping list and stick to it.
Take your lunch to work or school instead of eating out.
Shop around to get the best deal for big-ticket items like cars, furniture, and appliances.
Pay your bills on time to avoid late fees, extra finance charges, utilities being turned off, eviction, repossessions, and the costs of a bad credit rating.
If you smoke think about the cost of each pack of cigarettes. Diapers on average are $20per box and cigarettes cost$4.02 a pack.

Budget Pitfalls

Rent to Own Stores-Rent to own stores often charge high interest on household items.

Check Cashing Stores-These stores charge a fee for each check they cash.

Payday Loans- These stores lend you money for a fee until your next paycheck.

Refund Anticipation Loans- Some tax preparation sites offer to give you a loan for the amount you expect to get back from your taxes. They charge you high interest on the amount of the loan.

Pawn Shops- Beware of too good to be true items or deals.

Credit Cards- Credit cards can have high interest rates. If you have credit card debt, it is wise to pay off cards with high interest rates first.

Fees (late fees, bounced checks, and other fees)- being conscientious about paying bills on time and keeping good records can save you time and money.

Not paying a bill at all- If you cannot afford to pay an entire bill, call the company to make payment arrangements. Stick to your payment arrangements.

What Does the Bible Say About Budgeting?

These verses may be of help to you:

Transfer ownership back to God

Colossians 1:16-17

1 Chronicles 29: 11-12

Humbly adjust your lifestyle to live below your means

Proverbs 21:20

Deuteronomy 25:13

1 Peter 5:5-7

Avoid or eliminate debt

Proverbs22:7

Navigate away from financial temptations

Psalm 119:36-37

Titus 2:12

Romans 13:14

Know your financial status and goals

Proverbs 27:23-24, 21:5

Share with people in need

Proverbs 22:9

James 1:27

2 Corinthians 9:9

Give to God first as your highest financial priority

1 Kings 17:13-16

Deuteronomy 14:22-23

Involve yourself in productive work

Proverbs 10:4, 13:4

Mathew 6:33

2 Thessalonians 3:9-13

View every need and desire as a chance to trust God

Psalm 34:10

Ecclesiastes 2:26

Insert time in your week to manage your finances

1 Corinthians 16:2

Proverbs 13:16, 14:23 24:3

Isaiah 32:8

Never be dishonest

Proverbs 13:11, 20:17, 10:2

Ephesians 4:28

Gain biblical understanding

Psalm 119:11

2 Chronicles 26:5

2 Timothy 3:16-17

Income

Fill in the sources and dollars per month your family receives in income. Update this worksheet if any additional sources are gained or if any sources of income are lost.

Sources of Income

Household Member / Job Title/Position / Dates From/To / Amount/month

Additional Income:

Type of Income / Household Member / Amount/Month
Child Support
Social Security or SSI
Disability
Unemployment
Social Security
Worker’s Compensation
Retirement/Pension
TANF
Food Stamps (SNAP)
Other

Total Monthly Income: $llllllllllllllllllllllllllllllllllll

Expenses

Rent/ House Payment...... $______

Homeowner’s/Renter’s Insurance...... $______

Natural Gas or Heating Fuels...... $______

Electricity...... $______

Water/ Trash Pick Up...... $______

Phone...... $______

Food...... $______

Snacks/ Meals Eaten Out...... $______

Transportation (car payment)...... $______

Car Insurance...... $______

Gas/Fuel...... $______

Medical Insurance/ Hospital Bills...... $______

Day Care...... $______

Child/Spousal Support...... $______

Pet Care...... $______

Clothing...... $______

Tithing/ Charitable Giving...... $______

Loans...... $______

Debt Payments/Credit Cards...... $______

Personal (toiletries, allowances, etc.)...... $______

Savings...... $______

Entertainment(anything not listed above)...... $______

Other (Specify): ______...... $______

Total Monthly Income: ...... $llllllllllllllllllllllllllllllllllll

Total Monthly Expenses: ...... $llllllllllllllllllllllllllllllllllll

Balance...... $llllllllllllllllllllllllllllllllllll

Income

Fill in the sources and dollars per month your family receives in income. Update this worksheet if any additional sources are gained or if any sources of income are lost.

Sources of Income

Household Member / Job Title/Position / Dates From/To / Amount/month

Additional Income:

Type of Income / Household Member / Amount/Month
Child Support
Social Security or SSI
Disability
Unemployment
Social Security
Worker’s Compensation
Retirement/Pension
TANF
Food Stamps (SNAP)
Other

Total Monthly Income: $llllllllllllllllllllllllllllllllllll

Expenses

Rent/ House Payment...... $______

Homeowner’s/Renter’s Insurance...... $______

Natural Gas or Heating Fuels...... $______

Electricity...... $______

Water/ Trash Pick Up...... $______

Phone...... $______

Food...... $______

Snacks/ Meals Eaten Out...... $______

Transportation (car payment)...... $______

Car Insurance...... $______

Gas/Fuel...... $______

Medical Insurance/ Hospital Bills...... $______

Day Care...... $______

Child/Spousal Support...... $______

Pet Care...... $______

Clothing...... $______

Tithing/ Charitable Giving...... $______

Loans...... $______

Debt Payments/Credit Cards...... $______

Personal (toiletries, allowances, etc.)...... $______

Savings...... $______

Entertainment (anything not listed above)...... $______

Other (Specify): ______...... $______

Total Monthly Income: ...... $llllllllllllllllllllllllllllllllllll

Total Monthly Expenses: ...... $llllllllllllllllllllllllllllllllllll

Balance...... $llllllllllllllllllllllllllllllllllll

Income

Fill in the sources and dollars per month your family receives in income. Update this worksheet if any additional sources are gained or if any sources of income are lost.

Sources of Income

Household Member / Job Title/Position / Dates From/To / Amount/month

Additional Income:

Type of Income / Household Member / Amount/Month
Child Support
Social Security or SSI
Disability
Unemployment
Social Security
Worker’s Compensation
Retirement/Pension
TANF
Food Stamps(SNAP)
Other

Total Monthly Income: $llllllllllllllllllllllllllllllllllll

Expenses

Rent/ House Payment...... $______

Homeowner’s/Renter’s Insurance...... $______

Natural Gas or Heating Fuels...... $______

Electricity...... $______

Water/ Trash Pick Up...... $______

Phone...... $______

Food...... $______

Snacks/ Meals Eaten Out...... $______

Transportation (car payment)...... $______

Car Insurance...... $______

Gas/Fuel...... $______

Medical Insurance/ Hospital Bills...... $______

Day Care...... $______

Child/Spousal Support...... $______

Pet Care...... $______

Clothing...... $______

Tithing/ Charitable Giving...... $______

Loans...... $______

Debt Payments/Credit Cards...... $______

Personal (toiletries, allowances, etc.)...... $______

Savings...... $______

Entertainment (anything not listed above)...... $______

Other (Specify): ______...... $______

Total Monthly Income: ...... $llllllllllllllllllllllllllllllllllll

Total Monthly Expenses: ...... $llllllllllllllllllllllllllllllllllll

Balance...... $llllllllllllllllllllllllllllllllllll

Income

Fill in the sources and dollars per month your family receives in income. Update this worksheet if any additional sources are gained or if any sources of income are lost.

Sources of Income

Household Member / Job Title/Position / Dates From/To / Amount/month

Additional Income:

Type of Income / Household Member / Amount/Month
Child Support
Social Security or SSI
Disability
Unemployment
Social Security
Worker’s Compensation
Retirement/Pension
TANF
Food Stamps(SNAP)
Other

Total Monthly Income: $llllllllllllllllllllllllllllllllllll

Expenses

Rent/ House Payment...... $______

Homeowner’s/Renter’s Insurance...... $______

Natural Gas or Heating Fuels...... $______

Electricity...... $______

Water/ Trash Pick Up...... $______

Phone...... $______

Food...... $______

Snacks/ Meals Eaten Out...... $______

Transportation (car payment)...... $______

Car Insurance...... $______

Gas/Fuel...... $______

Medical Insurance/ Hospital Bills...... $______

Day Care...... $______

Child/Spousal Support...... $______

Pet Care...... $______

Clothing...... $______

Tithing/ Charitable Giving...... $______

Loans...... $______

Debt Payments/Credit Cards...... $______

Personal (toiletries, allowances, etc.)...... $______

Savings...... $______

Entertainment (anything not listed above)...... $______

Other (Specify): ______...... $______

Total Monthly Income: ...... $llllllllllllllllllllllllllllllllllll

Total Monthly Expenses: ...... $llllllllllllllllllllllllllllllllllll

Balance...... $llllllllllllllllllllllllllllllllllll

Make a Plan

Month: ______Year: ______

Expected Income: / Expected Expenses:
Employer/Assistance / Expected Income / Payday / Payee / Amount Due / Date to Pay
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
Total: / $ / Total: / $

Recording Your Expenses

Month: ______Year: ______

Actual Income: / Actual Expenses:
Employer/Assistance / Expected Income / Payday / Payee / Amount Due / Date to Pay
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
$ / $
Total: / $ / Total: / $

Recording Your Expenses

DCDebit CardATMTeller Withdraw ADAutomatic DepositAPAutomatic Payment BPOnline Bill PayTBalance TransferTDTax Deductible

Number or Code / Date / Transaction Description / Payment, Fee, Withdraw(-) / Deposit, Credit (+) / Balance

Make a Plan

Month: ______Year: ______

Recording Your Expenses

Month: ______Year: ______

Recording Your Expenses

DCDebit CardATMTeller Withdraw ADAutomatic DepositAPAutomatic Payment BPOnline Bill PayTBalance TransferTDTax Deductible

Number or Code / Date / Transaction Description / Payment, Fee, Withdraw(-) / Deposit, Credit (+) / Balance

Make a Plan

Month: ______Year: ______

Recording Your Expenses

Month: ______Year: ______

Recording Your Expenses

DCDebit CardATMTeller Withdraw ADAutomatic DepositAPAutomatic Payment BPOnline Bill PayTBalance TransferTDTax Deductible

Check No. / Date / Transaction Description / Payment, Fee, Withdraw(-) / Deposit, Credit (+) / Balance

Make a Plan

Month: ______Year: ______

Recording Your Expenses

Month: ______Year: ______

Recording Your Expenses

DCDebit CardATMTeller Withdraw ADAutomatic DepositAPAutomatic Payment BPOnline Bill PayTBalance TransferTDTax Deductible

Number or Code / Date / Transaction Description / Payment, Fee, Withdraw(-) / Deposit, Credit (+) / Balance

Make a Plan

Month: ______Year: ______

Recording Your Expenses

Month: ______Year: ______

Recording Your Expenses

DCDebit CardATMTeller Withdraw ADAutomatic DepositAPAutomatic Payment BPOnline Bill PayTBalance TransferTDTax Deductible

Number or Code / Date / Transaction Description / Payment, Fee, Withdraw(-) / Deposit, Credit (+) / Balance

Make a Plan

Month: ______Year: ______

Recording Your Expenses

Month: ______Year: ______

Recording Your Expenses

DCDebit CardATMTeller Withdraw ADAutomatic DepositAPAutomatic Payment BPOnline Bill PayTBalance TransferTDTax Deductible

Number or Code / Date / Transaction Description / Payment, Fee, Withdraw(-) / Deposit, Credit (+) / Balance