Creating a budget encourages success in 4-H clubs
Michigan State University Extension suggests that a budget can help Michigan 4-H clubs, groups or other organizations track revenue and expenditures.
Budgets can be beneficial for Michigan 4-H clubs and groups as well as other organizations. A budget is a plan of expected revenue and expenditures. Budgets do not have to be complex; they can be very simple. Before creating a budget, a group needs to make some considerations. These considerations will help the group when it comes to making decisions related to the budget.
Items to consider:
- What does the group want to accomplish? What is the goal?
- How will the group accomplish this goal?
- How much is this goal going to cost?
- What is the time frame for this goal to be accomplished?
Knowing the following will also help when creating your budget:
- The time period covered; are you creating a budget from January 1 to December 31 or July 1 to June 30, etc.
- Income and revenue (dues, fundraisers, annual donations, auctions, etc.)
- Expenses (cost of fundraisers, club materials and supplies, fees to be paid, postage, copies, etc.)
- Are there any carry-over funds?
The budget needs to be approved by the club, group or organization; this will affirm everyone has the same goal in mind. Each month, if the group meets monthly, a report should be given showing where the group started, with the projected income and expenses. Remember a budget is a projection – it can change.
The National Endowment of Financial Education- High School Financial Planning Program has a unit on budgeting. This lesson is for an individual, but can easily be modified to fit a club, group or organization.
To learn more about how you can implement this program into financial education, see the article, “Financial education makes students confident decision makers.”