7th Finance

7th Financial Literacy

Ms. Schaefer

Personal Budget

• A way of organizing income and expenses

• Is made for a period of time, usually monthly

• Allows you to make financially responsible decisions

Expenses

• Rent or Mortgage

• Retirement Savings

• Income Taxes

• Utilities

• Savings for College and Emergencies

• Entertainment

• Food

Fixed and Variable Expenses

• Fixed is the same each month

• Fixed...think cement...fixed in place

• Variable changes each month

• Variable "varies"

• Variable expenses are places we can cut our budget to stay on track

Want versus Need

• Want is something you can live without

• A need you must have to survive

• Needs: Food, Housing, Phone, etc

• Wants: Expensive car, going to the movies, eating out, etc

• A need can become a want if it cost an extreme amount for no reason. Example a mansion for one person to live in.

Multiple Select

Which are words for money you make or earn?

• Salary

• Income

• Paycheck

• Wage

• Rent

Multiple Choice

Which is a variable expense?

• Rent

• Food

• Car Payment

• Insurance

Multiple Choice

Which is a fixed expense

• Rent

• Food

• Entertainment

• Electric Bill

Multiple Choice

What is a source of money you make?

• Mortgage

• Rent

• Insurance

• Wage

Multiple Choice

What is true about a budget

• a budget is not helpful

• a budget helps decide how to spend and save your money

• a budget does not need to be done every month

Multiple Choice

What is a need

• an item that you would like to have

• an item that you have to have to survive

• an item that costs a lot

• an item that is important for you to do your job

Multiple Choice

A mortgage is

• a loan for a car

• a loan for a house

• a loan for college

• I have no idea

Multiple Choice

Payment received for goods or services, including employment.

• interest

• dept

• credit

• income

Multiple Choice

Money borrowed from a bank.

• dept

• loan

• budget

• expense