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:

  1. What does the group want to accomplish? What is the goal?
  2. How will the group accomplish this goal?
  3. How much is this goal going to cost?
  4. 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.”

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