Budget planner
This Budget Planner enables you to:
work out where your money is going
add your own items
Download the worksheets here
Who should have a budget?
Tip: A tight budget is harder to stick to. Be realistic.
Everyone can benefit from a budget. If you’re spending less than you earn, you can use your budget to work out how much you can put aside each payday to save. You can save for an item you want to buy, or for a rainy day (when you may need money unexpectedly, for example a doctor’s appointment or if you car broke down).
If you’re spending more than you earn, use your budget to see where your money is going. Then see if there are any ways you can cut your spending or increase your income.
How to make a budget:
1. Add up how much money is coming into your household (your income), and how much is going out (your spending), then work out the difference (surplus/deficit).
2. The result is either money left over (a surplus) or not enough money to cover your spending (a deficit).
3. Aim for a surplus so you have some money to save for your goals or pay off debt faster.
Why you need to grow your income:
If your income doesn't grow you’ll effectively earn less each year just because of inflation. So when you're planning your finances, don't forget to include goals for growing your income. You can grow your income by earning a raise in pocket money/salary in your chores/job or earn money from outside sources, for example, extra chores/washing cars/second work/hobby and so on.
Inflation:
Inflation is the rate at which the prices of goods (e.g. groceries) and services (cutting grass/servicing your car) increase over time. The effect of this is to reduce the purchasing power of money. For example, if you could buy something with $1000 now, in one year’s time, you would need $1020 to buy that same thing (assuming a rise of 2% in inflation).
ACTIVITY 1:
Make up your own Budget:
Firstly you need to work out a budget for yourself.
1. Decide on an item you want to buy, find out the price (go to the different websites of shops that sell that item) and compare prices.
2. Then, decide how much of your weekly/monthly pocket money you want to set aside for it.
3. Work out how long it will take for you to buy the item. Set an end date to reach your goal.
4. If you don’t receive pocket money, or if your pocket money is not enough, then start searching for a part time job where you can earn more money, such as washing cars, watering and weeding gardens, walking dogs, etc. Add that to your budget.
5. Starts saving.
6. Check every month to see if you keep with your budget, to obtain your goal at the date you’ve set.
Budget planner Weekly Fortnightly Monthly End date for goal
Item you want to buy: ? ________________________
Price: ? __________________
Compare prices:
1. ? ________________________________
2. ? ________________________________
3. ? ________________________________
4. ? ________________________________
Work out how long it will take:
Pocket Money: $_____ amount for goal
What other jobs can I do to earn more:
1. ? _____________________________
2. ? _____________________________
3. ? _____________________________
4. ? _____________________________
Total amount to save: _____________________
Date of start saving: ___________ End date: _____________
Tracking your saving
Success!!! You’ve reached your end date and bought your item.
ACTIVITY 2:
Make up a Budget for Mum and Dad:
1. Ask your Mum or Dad how much they are spending on the following items per week? Then work out how much these items cost them fortnightly (x 2 weeks), monthly (x4 weeks) and yearly (x 52 weeks).
2. Ask Mum or Dad how much salary they earn per week, then work out how much they earn fortnightly (weekly $ amount x 2 weeks), monthly (weekly $ amount x 4 weeks) and yearly (weekly $ amount x 52 weeks).
3. Use Google to find out how much did inflation went up over the last 5 years. Add the inflation rate of each of the 5 years together and then divide by 5 to work out what the medium raise in interest rate was over the last 5 years.
4. Work out how much your mum or dad need to earn next year, and then 5 years on and then 10 years on, to keep up with inflation. Do this by adding the medium interest rate in no. 3 to your mum’s or dad’s yearly salary: $ ____ yearly income + ____% income rate = next year’s income.
___ % medium rate (no. 3) x 5 years = $ ________ income after 5 years.
___ % medium rate (no. 3) x 10 years = S ________ income after 10 years.
5. Discuss with mum or dad how they can earn this extra income.
Budget planner Weekly Fortnightly Monthly Yearly
Income
- Home mortgage
- Power/Electricity/Gas
- Rates
- Water
- Groceries
- Petrol/Fuel
- Car payment
- Medical
- Insurance: Car
- Insurance: House
- Insurance: Contents
- Life policy payments
- Bank fees
- Entertainment & eat-out
- Pocket/spending money
- Savings
- Other
- Credit/Store cards
- Personal Loans
- Pay TV
- Phone
- Mobile Phone
- Internet Service
- Appliance rental
- Bank fees
- Car registration, WOF
- School fees
- School activity fees
- School book fees
- Childcare/Daycare/Aftercare
- Children’s pocket money
- Other
Total Expenses
Total Earnings
- Total Expenses
= Surplus/Deficit
Extra $ to save/earn