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Question: Mention the word "budget" to most people and many negative thoughts come to mind. However, a budget does not have to be restrictive or inflexible. In fact, a budget may give you more freedom. A budget is merely a plan that helps you achieve your goals. When getting ready to prepare a budget, you not only need to gather income and expense data, but you also need to determine and prioritize your goals. For example, suppose you want to take a trip during spring break, but you also like to have all the latest clothing styles. If you can't do both, which is more important to you? No one can answer this question for you. Financial goals are very personal. One of the major benefits of a budget is that any "leftover" money you have is used to fund your goals in their order of priority. This may mean that instead of spending money on the latest fashions, you may choose to save it to fund your spring-break trip-but only because you determined the trip was more important. You are in control, and your budget can change as your goals change. Think of a budget as a flexible spending plan that helps you achieve your goals, and you will be more likely to follow your budget and actually be able to take that trip!
Activities 1. One way to gather expense data for your budget is to write down all of your expenses for a period of time. Do this for one week. Try to pick a typical week, and remember to include all expenses. Then categorize what you've spent into "needs" and "wants."
2. Survey five adults. Ask each one if he or she has a budget. If that person has a budget, ask if he or she follows it. What does he or she feel are the advantages and disadvantages of having a budget? Summarize your findings in a written report.
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Who are the stakeholders in this situation? What are the ethical issues involved?
What conflict resolution strategies
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