(Objective 3: Practice balancing personal income and expenses.)
- Handout 3: Monthly Budget Worksheet (short) or
OPTIONAL:
- Handout 4: When You Need to Reduce Expenses
- Handout 5: Set Up a Spending Plan (long)
- Calculators for participants’ use.
- Handout 6: Paying the Rent—On Time, Every Month
- Handout 7: Track Spending
- Handout 8: Pocket Spending Tracker
Suggested Introduction: Estimating monthly household income is the first step in determining if one is able to financially afford to rent housing. The second step is to determine the ways in which estimated monthly housing costs will fit with current spending patterns.
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Step 1: Estimating monthly household income: Have participants individually complete Handout 3: Monthly Budget Worksheet or Handout 5: Set Up a Spending Plan for their own household expenses and income. You may also suggest online budgeting tools or phone apps listed on Overall Handout.
OPTIONAL: Discuss Handout 4: When You Need to Reduce Expenses for discussion related to their own situation.
Step 2: Determine the ways in which estimated monthly housing costs will fit with current spending patterns. Discuss Handout 6: Paying the Rent—On Time, Every Month. When using the payment calendar system, each payment should be written on the due date along with who must be paid and how much. Be sure to allow time for mail service if not paid online. Pay all bills when due to avoid late fees, extra finance charges, and utilities from being turned off, eviction, repossessions, bad credit rating.
Discuss Handout 7: Track Spending which lists different options for paying bills on time and the importance of tracking spending as written on the handout. You may want to demonstrate some of the suggestions such as using a checkbook register, using envelopes for receipts, or computer programs listed on Overall Handout.
Demonstrate Handout 8: Pocket Spending Tracker where the participant tracks daily spending of cash (or pocket money). Discuss why this is important.
