Question
Objective Develop a budget that incorporates short-, medium-, and long-term financia l goa ls. Note: This activity should be completed af ter the Setting Smart Financia l Goa ls activity handout in Chapter 3. Directions 1 Review the basics of budgeting from Section 3: The Importance of Having a Zero-Based Budget in the student content. 2 Write down the number one short-, medium-, and long-term financia l goa ls you developed and recorded on your Setting Smart Financial Goals activity handout. • Short-Term Financial Goal (o n e m o n t h t o t w o y e a r s) • Medium-Term Financial Goal (t wo t o five ye a r s) • Long-Term Financial Goal (more t ha n five yea rs) 3 Place your monthly net income at the top of the Budgeting for Sma r t Fina ncia l Goa ls ha ndout. • If you work a part-time job after-school, complete the budget form using your after-tax monthly income. • If you do not earn money from a part-time job but you receive spending money from your parents on a regular basis, use that monthly amount to complete the budget form. • If you currently do not earn money on a reg ular basis, use $300 as your monthly income in order to complete your budget. 4 Experiment with your budget item amounts, but ma ke sure you create a zero-based budget. Give ever y dollar a name on paper, on purpose! Remember, money that is not directed toward a goa l or included in a plan is ty pica lly wasted.
Answers
GPT-5 mini
I can help you complete the Budgeting for Smart Financial Goals activity. I don’t yet have your SMART goals or your monthly net income, so below I’ll:
- Explain how to fill the form,
- Give a complete example zero‑based budget using $300/month (so you can see how to assign every dollar),
- Give a blank budget template you can copy/fill,
- Offer next steps and tips.
Step 1 — write your top financial goals
(If you already wrote these on your “Setting SMART Financial Goals” handout, copy them here. If not, use these example goals or tell me yours and I’ll plug them in.)
Example goals:
- Short-term (1 month–2 years): Save $360 to replace my phone in 6 months.
- Medium-term (2–5 years): Save $1,800 toward a used car in 36 months.
- Long-term (5+ years): Save $10,000 for college expenses/tuition over 5+ years.
Step 2 — put your monthly net income at the top
- If you earn money, use your after‑tax monthly pay.
- If you receive regular allowance, use that amount.
- If you don’t have regular income, use $300 to practice (example below).
Example zero‑based budget (monthly income = $300)
Every dollar is assigned (income minus allocations = $0).
- Monthly net income: $300
Allocations:
- Short‑term goal (phone savings): $60
- Medium‑term goal (car savings): $30
- Long‑term goal (college savings): $40
- Emergency / misc savings: $20
- Transportation (bus/gas): $30
- Phone plan: $25
- Food / lunches / snacks: $30
- Entertainment / streaming / outings: $20
- Clothing / personal care: $20
- Giving / charity: $10
- Debt repayment / extra savings: $15
Total allocated = $300 (zero‑based)
How to build your own zero‑based budget (step by step)
1. Write your monthly net income at top.
2. List fixed/required items first (phone plan, subscriptions, bus pass).
3. Add savings for your goals next — “pay yourself first.” Decide how much each goal needs and a target date, then divide target by months left to get monthly contribution.
4. Add variable spending (food, entertainment, clothes).
5. Add emergency/misc and debt payments.
6. Adjust amounts until Income − Allocations = 0. If you have leftover money, increase goal savings or debt repayment. If short, reduce discretionary categories or re‑prioritize goals.
7. Track actual spending for a month and revise allocations for the next month.
Quick tips
- Prioritize an emergency fund first (even $10–$20/mo helps).
- Automate savings transfers if possible (treat savings like a bill).
- Cut one discretionary category (e.g., reduce entertainment) to fund a priority goal.
- Increase income (more hours, babysit, gig) if goals aren’t reachable without too much sacrifice.
- Review monthly and update for goal progress or income changes.
Blank budget template you can copy and fill
- Monthly net income: ______
- Short-term goal (name, target, timeline): ______ / Monthly contribution: ______
- Medium-term goal (name, target, timeline): ______ / Monthly contribution: ______
- Long-term goal (name, target, timeline): ______ / Monthly contribution: ______
- Fixed expenses (list each with monthly $): ______
- Variable expenses (food, transport, entertainment, etc. with $): ______
- Savings / emergency / debt repayment: ______
- Giving / other: ______
Total allocations = ______ (must equal income)
Would you like me to:
- Fill a personalized budget for you if you give me your monthly income and your 3 goals, or
- Provide this budget as a CSV you can open in Excel/Sheets?
Tell me your monthly net income and the short-, medium-, and long-term goals you wrote down and I’ll make a customized zero‑based budget.
- Explain how to fill the form,
- Give a complete example zero‑based budget using $300/month (so you can see how to assign every dollar),
- Give a blank budget template you can copy/fill,
- Offer next steps and tips.
Step 1 — write your top financial goals
(If you already wrote these on your “Setting SMART Financial Goals” handout, copy them here. If not, use these example goals or tell me yours and I’ll plug them in.)
Example goals:
- Short-term (1 month–2 years): Save $360 to replace my phone in 6 months.
- Medium-term (2–5 years): Save $1,800 toward a used car in 36 months.
- Long-term (5+ years): Save $10,000 for college expenses/tuition over 5+ years.
Step 2 — put your monthly net income at the top
- If you earn money, use your after‑tax monthly pay.
- If you receive regular allowance, use that amount.
- If you don’t have regular income, use $300 to practice (example below).
Example zero‑based budget (monthly income = $300)
Every dollar is assigned (income minus allocations = $0).
- Monthly net income: $300
Allocations:
- Short‑term goal (phone savings): $60
- Medium‑term goal (car savings): $30
- Long‑term goal (college savings): $40
- Emergency / misc savings: $20
- Transportation (bus/gas): $30
- Phone plan: $25
- Food / lunches / snacks: $30
- Entertainment / streaming / outings: $20
- Clothing / personal care: $20
- Giving / charity: $10
- Debt repayment / extra savings: $15
Total allocated = $300 (zero‑based)
How to build your own zero‑based budget (step by step)
1. Write your monthly net income at top.
2. List fixed/required items first (phone plan, subscriptions, bus pass).
3. Add savings for your goals next — “pay yourself first.” Decide how much each goal needs and a target date, then divide target by months left to get monthly contribution.
4. Add variable spending (food, entertainment, clothes).
5. Add emergency/misc and debt payments.
6. Adjust amounts until Income − Allocations = 0. If you have leftover money, increase goal savings or debt repayment. If short, reduce discretionary categories or re‑prioritize goals.
7. Track actual spending for a month and revise allocations for the next month.
Quick tips
- Prioritize an emergency fund first (even $10–$20/mo helps).
- Automate savings transfers if possible (treat savings like a bill).
- Cut one discretionary category (e.g., reduce entertainment) to fund a priority goal.
- Increase income (more hours, babysit, gig) if goals aren’t reachable without too much sacrifice.
- Review monthly and update for goal progress or income changes.
Blank budget template you can copy and fill
- Monthly net income: ______
- Short-term goal (name, target, timeline): ______ / Monthly contribution: ______
- Medium-term goal (name, target, timeline): ______ / Monthly contribution: ______
- Long-term goal (name, target, timeline): ______ / Monthly contribution: ______
- Fixed expenses (list each with monthly $): ______
- Variable expenses (food, transport, entertainment, etc. with $): ______
- Savings / emergency / debt repayment: ______
- Giving / other: ______
Total allocations = ______ (must equal income)
Would you like me to:
- Fill a personalized budget for you if you give me your monthly income and your 3 goals, or
- Provide this budget as a CSV you can open in Excel/Sheets?
Tell me your monthly net income and the short-, medium-, and long-term goals you wrote down and I’ll make a customized zero‑based budget.