BAL­ANC­ING ACT!

The Hamilton Spectator - - SPORTS -

Let’s Talk Bud­get­ing! Pic­ture these sce­nar­ios: • Jac­inta gets paid on Fri­day and she de­cides to go shop­ping. At the end of her shop­ping spree she has spent all of her pay and is in a panic be­cause her rent is due in 2 days. How could she have avoided this prob­lem? • Karim has paid his rent and util­ity bills but had noth­ing left for food. What will he sur­vive on un­til his next pay cheque in 7 days? How could he have avoided this prob­lem? • Courtney de­cided to put $50 from each pay cheque into a sav­ings ac­count for a num­ber of months so she can buy a lap­top be­fore school starts in Septem­ber. How­ever, she has spent that $50 from her last three pay cheques on new clothes and now won’t be able to buy the lap­top she needs for school. How could she have avoided this prob­lem? The an­swer is sim­ple –man­age your money bet­ter by com­ing up with a bud­get! Keep­ing track of how much money you have, what you are spend­ing it on – and know­ing whether or not you can af­ford to buy what you want – are the se­crets to suc­cess with money. A bud­get can help you man­age your money. It is key to fi­nan­cial con­trol. It gives you a pic­ture of where you stand fi­nan­cially and where you’re headed. It can help you save money, plan for the fu­ture and avoid run­ning out of money be­fore you get paid again! The Ins and the Outs of a Bud­get A bud­get is a plan that has two parts: Money In In­come which in­cludes money earned at a job, al­lowance, and gifts. Money Out This shows how you use your money. It in­cludes the money you spend, save, in­vest and if you choose to, the money you do­nate. Spend­ing in­cludes every­thing you need to spend money on – your re­quired ex­penses. For ex­am­ple, rent, food, elec­tric­ity, heat or in the case of stu­dents liv­ing at home things like bus fare. Spend­ing also in­cludes the money you spend on ex­tras – those things you buy just be­cause you want them such as snacks, a movie ticket, pizza for din­ner or a video game. Other money go­ing out is that which you save/in­vest and do­nate. In­vest­ing means to save money in some way. When you put money into an ac­count that pro­vides in­ter­est or when you buy other prod­ucts which yield a re­turn on your money you are in­vest­ing your money. Some­times in­vest­ments such as stocks, bonds and guar­an­teed in­vest­ment cer­tifi­cates of­fer a greater re­turn on your money than the in­ter­est of­fered on a sav­ings ac­count at a bank or credit union. And, there are many in­vest­ment op­tions. In ad­di­tion, to stocks, bonds and guar­an­teed in­vest­ment cer­tifi­cates there are trea­sury bills, mu­tual funds, term de­posits and so many more. A les­son on these in­vest­ment op­tions will have to wait for an­other unit, though. Other money go­ing out are those funds you may choose to do­nate to a char­i­ta­ble cause. What’s the Plan? Ear­lier, you read about how Jac­inta, Karim and Courtney ran out of money. A good way to avoid this hap­pen­ing is to have a weekly bud­get. Have a look at this one: What do you no­tice about how Tanis man­ages her money? If you no­ticed that she doesn’t spend more than she has – you’d be right. She is “liv­ing within her means” and her bud­get bal­ances. That in­di­cates Tanis’ bud­get is a good one. Do you have a choice in the mat­ter? Of course you do. Bud­get­ing in­volves all kinds of choices. You choose what to do with your money and how much goes where. You choose how much you will save. You choose how much you will spend and you choose what you spend your money on. You also make a choice when de­cid­ing whether or not to do­nate and to which char­ity you will make a do­na­tion. What about buy­ing a birth­day gift for a friend. Choice also comes into play here - Do you buy a birth­day gift for $20 or one for $10? One thing is cer­tain. It does take some time and thought to spend wisely. You need to think about what you want to­day as well as what you want to­mor­row. Speak­ing about To­mor­row Fast for­ward a few years. Imag­ine your­self as a par­ent with your own fam­ily. What money comes into your house­hold and what money goes out? What ex­penses will you have? Likely a few more than you have right now .... Next Up: Piggy banks, big banks, and credit unions. News­pa­per Ac­tiv­ity Some­times your in­come may change or un­ex­pected car or house re­pairs af­fect your bud­get. In these cases it be­comes nec­es­sary to ad­just your bud­get by cut­ting some of your other ex­penses. There are a num­ber of ways you can do this: • When look­ing to buy large items - a car for ex­am­ple, or a tele­vi­sion you might choose to buy se­cond hand. The clas­si­fied ad­ver­tise­ments are a good place to look for used items. • When it comes to food and toi­letries, gro­cery stores will of­ten have spe­cials on items and they of­ten of­fer coupons so you can save money on pur­chases. Dis­play ad­ver­tise­ments within the news­pa­per and flyers are a good place to look for these kind of deals and coupons. • When it comes to en­ter­tain­ment, there are of­ten many things go­ing on in the com­mu­nity which are free of charge. The ‘Too Good to Miss’ piece that ap­pears in The Spec­ta­tor ev­ery Fri­day lists free events in your com­mu­nity. Your goal to­day, is to find out how much you can save by buy­ing used, pur­chas­ing gro­cery items on sale or with coupons and by choos­ing a free com­mu­nity event for your en­ter­tain­ment this week. Fol­low the in­struc­tions on black­line master 4 which your teacher gives you to make some bud­get cuts. Fundrais­ing Plan Your class is the Mar­ket­ing Team for your fundraiser. The Mar­ket­ing Team is re­spon­si­ble for de­vel­op­ing, de­sign­ing and im­ple­ment­ing an ad­ver­tis­ing cam­paign for the fundraiser. • As a class dis­cuss: What dif­fer­ent types of pro­mo­tional ac­tiv­i­ties could you en­gage in to make peo­ple in your school aware of your fundraiser? What are teaser ads and how can they be used ef­fec­tively? What types of pro­mo­tional ac­tiv­i­ties can you think of for each of the ad­ver­tis­ing plat­forms listed be­low? Choose at least one print pro­mo­tional ac­tiv­ity and then vote for two or three other types of pro­mo­tional ac­tiv­i­ties you will use. When choos­ing, think of what will ap­peal to your au­di­ence and what will en­cour­age them to at­tend your fundraiser. • When it comes to ad­ver­tis­ing across a few plat­forms you want to make sure your mes­sage is con­sis­tent. One of the ways this can be achieved is to use a tagline. For the next in­stall­ment try to come up with a tagline that can be used in your pro­mo­tional ac­tiv­i­ties. To get the creative juices flow­ing look at the well-known taglines above and be­low. Can you think of the com­pany or prod­uct that each tagline be­longs to

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