IHMVCU "Saving for Education" - Big Brothers Big Sisters

Saving for

Education COACHING TIPS & ACTIVITY GUIDE

BUDGETING ACTIVITY

FOLLOWING A

BUDGET

Help guide your Little as they work toward achieving their future educational goals. Saving money begins with understanding how to manage and follow a budget.

What they’ll learn How to interpret their budget and set financial goals.

What you’ll need:

5 sheets of paper

Sharpie/Marker

1 PERSONAL BUDGETING | ACTIVITY GUIDE

Overview This activity will make the concept of budgeting easier for your Little by utilizing the 50/30/20 budgeting method: • 50% of your income goes to needs • 30% to wants • 20% saving/investing

BUDGETING ACTIVITY

50/30/20 Activity 1

2

To start, grab a sheet of paper and write out your Little’s income with itemized dollar amounts (birthday money, babysitting, allowance, etc.) Then, in large handwriting, have them write the total income amount.

On a second piece piece of paper, estimate their required expenses with dollar amounts.

Label this piece of paper “REQUIRED EXPENSES.“ Examples of required expenses would include your Little’s cell phone bill, gas money or school lunch money.

Explain to your Little why required expenses are the largest piece of the pie when determining a budget. Basic necessities will always take priority.

1 PERSONAL BUDGETING | ACTIVITY GUIDE

3

Grab another piece of paper. Label it “EXTRA EXPENSES.“ On this sheet, ask your Little to write or draw all of their wants. Clothes, treats, video games, gifts — whatever their financial goals are that they they would like to work toward achieving.

Explain to them that if they save 30% of their income, their budget will still allow room for spending on things that bring them joy.

4

Label the last piece of paper “SAVINGS GOALS.“ Whether it be investing in a higher education or purchasing a new car, your Little’s future will be home to lots of big expenses.

Help them understand how saving 20% of their income can help them achieve these larger savings goals.

SAVING ACTIVITY

SAVING FOR A

FUTURE

A solid education is an investment worth pursuing. Help your Little make plans to pursue a higher education. Educational options vary based on what passion your Little chooses to turn into a field of study!

What they’ll learn How to plan for their future educational investments.

What you’ll need:

Computer access

3 PERSONAL BUDGETING | ACTIVITY GUIDE

1

Identify options

Sit down with your Little and think about what kind of career they want and what college they’re interested in attending. Ask them questions like what they enjoy doing in school and what their favorite subject is and why. Try to help them pinpoint what their passions are and suggest career roles you think they would be interested in.

2

Research & explore

Research their career choices and what degree or career path they need to take to achieve that career. Explain what tuition/ room and board expenses are.

In a notebook or Google spreadsheet, have them label their notebook or Google sheet with Future Goals/ Dreams and write down their top colleges. In separate fields, write why they like that college, the tuition cost, room and board expenses (if applicable) and if they offer student aid/ scholarships.

If they want to go to a trades school or start their career straight out of high school, research what opportunities will help them start their career. Research events in our area like the Junior Achievement Advanced Manufacturing Careers Expo or attend STEM events listed on the QC Engineering and Science Council http://qcesc.org/events/. Attend the events with them and encourage them to ask questions.

SAVING ACTIVITY

3

Map it out!

Map out their career path by encouraging them to graduate high school and seek out apprenticeships or part-time jobs to gain experience. Encourage them to follow the 50/30/20 budget to help manage their income and expenses.

4

Offer assurance

After you’ve researched, ask them how they feel and assure them that you are there to answer any questions. If they have any additional questions about their finances and how to budget their money, stop by an IHMVCU branch, and one of the tellers will be happy to help answer any questions they may have.

5 PERSONAL BUDGETING | ACTIVITY GUIDE