Budgeting

Budgeting

Intro Lesson

WHAT IS A BUDGET?

A Budget is a plan for saving and spending money.

WHAT IS A WANT ?

A want is something that is nice to have, but we DO NOT need these things to survive.

For example: TV, XBOX, CANDY & iPHONE

WHAT IS A NEED?

A need is something we have to have to survive.

For example: FOOD, WATER, HOUSE/APARTMENT

What is a FIXED EXPENSE ?

A Fixed Expense is an expense that comes every month and DOES NOT CHANGE.

For Example : RENT, CAR INSURANCE, PHONE BILL

These bills come at the same time and same amount each month as long as behaviors are the same.

WHAT IS A VARIABLE EXPENSE ?

A Variable expense are expenses that change from month to month.

For Example: Trip to movies, vacations, eating out

These expenses change and/or do not happen every month, and the amount/total also changes.

WHAT IS AN EXPENSE?

An expense is the money spent on something

For Example: Bills, Clothes, Vacations

ANYTHING MONEY IS SPENT ON IS AN EXPENSE

WHAT IS AN INCOME?

An income is money received , especially on a regular basis.

For example: Paychecks, allowance

INCOME= Money coming IN