Elements and Performance Criteria
- Identify and discuss budgeting as a financial tool
- Identify and consider role of budgeting in lives of different groups and importance of budgeting appropriately to meet expenses at different stages of life
- Discuss importance of setting financial goals
- Identify and discuss obstacles that might prevent financial goals being achieved, and types of behaviours and skills required for successful budgeting
- Prepare to develop a personal budget
- Record all income and expenses for a six-month period to assist in estimating expenditure requirements
- Obtain or develop budget spreadsheet to record income and expenditure for relevant period of time
- Identify and list all sources of income, regular fixed expenses and variable expenses for specified period in personal budget using budget spreadsheet
- Develop a personal budget
- Subtract total expenses recorded from total income to determine surplus or deficit budget for specified period
- Explore reasons for deficit budget if relevant and investigate ways to reduce expenses or increase income
- Explore allocation of surplus funds towards saving and meeting identified financial goals
- Implement and monitor the personal budget
- Follow budget according to plan for a period of time
- Record actual expenses and income for period during which budget is implemented
- Compare budgeted expenses and income with actual amounts and modify budget where necessary
- Discuss handy hints for managing personal budget
- Conduct ongoing review of budget to ensure it remains relevant and to ensure updates are incorporated if necessary