Money
Vol. 2, Issue 1
www.gmcu.com Mora • Milaca • Isle • Elk River • Pine City • Ogilvie 800.808.2830
Budgeting
101
A budget is an important part of
achieving the goals you have set
for yourself. Most people have a
limited amount of money and hav-
ing a budget will help you to priori-
tize your spending so that you can
maximize what you have.
Budgeting is not about denying
yourself everything you enjoy. It is
about looking at your priorities and
making choices.
Creating a budget is really very
simple. You don’t have to be a
financial planner to do it. You just
need to know how you spend your
money - how much and how
often.
So, how do
you create
a budget you
ask?
1. Decide on the time frame you
will be tracking your income and
expenses. Weekly, Monthly?
2. Determine your income. Use
your Net income (the money you
take home after taxes). Don’t
forget to include any allowances or
gifts you will receive too.
3. Come up with a list of your
expenses. There are three
categories of expenses:
January 2010
► Fixed Expenses - ones that will
cost you the same each month. You
know exactly what dollar amount you
need to set aside each month. For
many, this would be their car pay-
ment.
► Variable Expenses - the amount
will fluctuate from month to month.
Food can be a variable ex-
pense as it depends on how
often you eat out. You can
use a range like $20 - $50.
► Periodic Expenses
- these are the ones
that you don’t pay every
month. For many, car insur-
ance would fit into this category.
You often times will pay insurance
once every 6 months.
Now...for the most important ex-
pense: Pay Yourself First! (P.Y.F.)
Whenever you receive money, you
should immediately put a certain
amount into an account that you
can set aside to help you reach
your financial goals.
Once you have the above steps
complete, simply subtract your ex-
penses from your income and whala!
You have put together your very
own budget.
Take a moment to step back and
look at your budget. Do you need to
tweak it and adjust any expenses?
Did you come up with a positive or
negative balance?
If you have extra money, you can
add it to your P.Y.F. or adjust more in
another expense category.
If you have a negative number,
you will need to adjust your
expenses accordingly.
Staying on Track
There are a variety of ways to
help you stay on track with your
budget. Here are a few
examples:
The Envelope System -
Distribute your money into
envelopes that are labeled with
your expense amounts on them.
When you need to spend the
money, simply take it out of the
envelope. When it is empty,
you are either done spending in
that category or you may move
money from another category to
adjust.
The Budget Spreadsheet - If
you are handy with computers,
you can also create a worksheet
for your budget. Each time you
spend money, enter that total in
the appropriate cell and update
your totals.
Personal Finance Software - If
you are ready to get more
advanced, check out the GMCU
Web Site www.gmcu.com to
download Budget $mart, a
FREE, easy-to-use software to
help you manage your money
more effectively.
Would you like to see an example
Budget? Flip to the reverse
side.
 Teen Advisors Saving money doesn’t need to be hard!

Wanted! Here are a few easy ideas to get your started:

• Cut out the soda - If you buy a soda every day, you are spending
over $450 a year! Put the money you would have spent on soda into your
savings account and watch your money add up.
• Get your movies from the library - memberships at the library are FREE.
Save yourself the expense of renting movies at the store.
• Save all of your spare change - collect it in a jar for a
few months and then bring it into the Credit Union. Go a
We recently held our fist TAB meeting.
We discussed many financial topics and step further - take a vow to never spend your change. If
learned what students your age are your total is $1.35, hand the cashier $2.00 and put the
looking for in a financial institution. If change ($0.65) in your jar. You will be surprised how fast
you want to be part of the inside scoop it adds up!
at GMCU, there is still time to join! • Get thrifty - you will be surprised at all of the great items
What does a Teen Advisory Board do? you will find at your local thrift shops. Check it out to save a ton of money
It meets once every 2 or 3 months and on clothes and accessories!
talks about products or services that
Jason’s Monthly Budget
GMCU might want to offer that would
interest people like you. In general, GMCU is on
help us figure out the best way to serve Facebook Estimated Income:
Paycheck (after taxes) $ 700
people your age.
Check out GMCU’s Facebook Interest Earned 5
page. Total Estimated Income: $ 705
What’s in it for you?
• The inside scoop at GMCU Our page has great information Fixed Expenses:
• Opportunity for your voice to be heard and pictures from events at your Savings (P.Y.F.) $ 100
• Increased personal finance and credit union. Car Payment 250
money management knowledge You can use our Facebook page Estimated Variable Expenses:
• Opportunity to work with promotions as a great resource to learn Cell phone $ 50
and marketing about what GMCU is up to. Food 75
• Network with other students in the area Recent posts include information Entertainment 30
• Build a great resume on Holiday Collections, Bake Gas 150
• Certificate of recognition Sales, Job postings and a
Periodic Expenses:
Financial Literacy award won by
To receive an application to serve on Car Insurance ($360/6 months) $ 50
GMCU!
the Teen Advisory Board (TAB) go to
Become a fan today!
www.gmcu.com, put your cursor over Total Expenses: $ 705
Products then select Savings Clubs Please make sure to have your parent’s
and finally Student Club and click on permission before visiting Facebook. Total Income $ 705
the Teen Advisory Board application - Total Expenses 705
link; visit any of our six branches or $ 0
call 800.808.2830 and we will send you
one.

Thank you to our TAB members. Your

input and ideas will help GMCU offer
the answer to topics teens want to
Cool
T
learn more about!
Jonathon - Otsego
Mallory - Ogilvie
Amanda - Mora
Dylan - Pine City
A This month’s cool link can be found by visiting www.bizkids.com.
This site is centered around the public TV series where kids teach kids about

B
money and business. You will find many great resources and financial tips.
You will even find some great games. Check it out!