BUDGETING

BUDGETING

A plan for saving and spending money.

Learning Objective-

I can create a budget, by understanding wants and needs and using money savings tips.

Wants vs. Needs

What is the difference between wants and needs?

Wants- Something that's just nice to have.

Needs- Something we have to have to survive.

WANTS

Phone

Eating out

Gym Membership

Haircuts

Entertainment

NEEDS

Clothing

Rent

Gas

Emergency Saving

Car insurance

School Books

Groceries

Car maintenance

Unexpected expenses.

Link is on Blackboard

Multiple Choice

Want or Need?

Multiple Choice

Want or Need?

Multiple Choice

Want or Need?

Multiple Choice

Want or Need?

Fixed Vs Variable Expenses

- When setting up a budget their are two tyoes of expenses.

-Fixed Expenses- Expenses that come every moth no matter what

-Variable Expenses- Expenses that can change from month to month.

Budgeting

When setting up a budget it is good to determine what your fixed expenses are and what your variable expenses are. This will help you understand how much you have to spend on fixed expenses no matter what each month and how much money you have left over for variable expenses.

Link is on Blackboard.

Multiple Choice

Going to the Movies

• Variable Expense

• Fixed Expense

Multiple Choice

Eating out

• Fixed Expense

• Variable Expense

Multiple Choice

Car Insurance

• Fixed Expense

• Variable Expense

Multiple Choice

Electric Bill

• Fixed Expense

• Variable Expense

• Can be both, debatable.

Multiple Choice

Cable Bill

• Fixed Expense

• Variable Expense

Gross Vs. Net Pay

Both are considered income!

-Gross Income- Total amount earned before deductions

-Net Income- Is your "take home pay"

-Salary vs. Wages

To prepare a budget....

You need to know your income your expenses.