10 Money Management Group Protocol

Group Focus: Money Management

Education Objectives: To budget and understand how to handle finances.

Content Goal: To understand the 50/30/20 rule and practice budgeting for a future purchase.

Group Guidelines: The group is a safe space for sharing. Everyone has a chance to share and participate without judgment. Ensure to treat others with respect.

Supplies needed: Budgeting Handout, Budgeting Handout KEY, pencils, marker and whiteboard. Optional: paper money, calculator.

Purpose: To understand budgeting and planning for bigger purchases.

Ice Breaker (5 minutes): What is an item or activity you would want to save up for?

Lesson (5 Minutes):

• How are you currently managing your money?
• What strategies have you used or are currently using to manage your money? Have you heard of any types of strategies to help budget your money?
• How do you think managing your finances right now is impacting your mental health?
  • Effects on mental health:
    • Financial stress refers to a feeling of worry or anxiety over money, debt, and various expenses.
    • 52% of U.S. adults reported money has a negative impact on their mental health including causing stress.
    • Can impact a person’s sleep, self-esteem, and energy levels.
    • Budgeting can help increase your ability to do the things you want to do.
• What is the importance of managing finances and budgeting?

Activity (20 minutes):

• Education on 50/30/20 rule:
  • 50% = $500 (needs)
  • 30% = $300 (wants)
  • 20% = $200 (savings)
• Wants and needs will vary from person to person depending on your stage in life. Let’s come up with a list defining both, let’s start with the needs.
• What might you think falls into the needs category?
  • Food, rent/mortgage, utilities, transportation cost, insurance coverage, and any clothing and tools you need for work.
  • Minimum required payments on a credit card or a loan also belong in this category.
• What might you think falls into the wants category?
  • Expenses that you can comfortably live without and is not essential for survival. Things you spend money on by choice.
  • Subscriptions, supplies for hobbies, eating out, and unnecessary clothes.
• It’s important to check these lists frequently and see if there’s anything you need to remove or add based on life circumstances.
  • Good questions to ask yourself when looking at your needs list:
    • Will you still need these items a few years from now or even a few months from now?
    • Are you able to swap your needs for other options?
  • Good questions to ask yourself when looking at your wants list:
    • Which of your wants were more important to you in the past than they are today?
  • Trim down your list until you’re left with the wants that add value to your life.
• Do you currently use savings? If so, what are you using it for? If not, what might you put money into a savings for?
  • Savings: The remaining 20% of your budget should go toward the future.
  • You may put money in an emergency fund, contribute to a retirement account, or save toward a down payment on a home.
  • It is important to keep in mind debt – if that is something you are struggling to manage you can take 10% out of the wants to pay into your debt, or you can split your savings into 10% for saving for future events.

• Budgeting Handout
  • List total monthly income > then monthly expenses on white board to show subtraction of costs.
  • What was difficult about this task?
  • What was easier than expected?
  • How can we make it a habit?
  • Is this a habit you could utilize monthly?

• Resources
  • If it is too expensive, where could costs be managed?
    • What resources might you use to help reduce the cost of different things?
    • If the participant has no examples share resources (findhelp.org)
      • Telephone:
        • Affordable Connectivity Program- discount up to $30 per month
      • Food:
        • Supplemental Nutrition Assistance Program
        • Food banks
        • Electronic Benefit Transfer EBT
        • WIC Program for women, infants and children

Discussion (10 minutes):

• What did you find helpful or confusing about the 50/30/20 rule?
• Is this a habit you could utilize monthly?
• How could you improve in this area of your life?

Closing Reflection (5 Minutes):

• What was the purpose of this activity?
• What are the benefits of incorporating this into your actual budget?