Budgets and gratification mistakes

Budgets and how to create one

by Ms. Schaefer

Poll

Every business- no matter how big or small- must use budgets

• Agree

• Disagree

We want a balanced budget

The money you spend = the money you make

Multiple Choice

What is the purpose of a budget?

• to help people improve their education and skills

• to help people determine how to train for their jobs

• to help people live healthier lives and exercise more

• to help people plan their spending and saving decisions

Multiple Choice

Which of the following is an example of income?

• trading supplies with your friend

• money you get for working a job

• buying an ice cream at lunch today

• charging a lunch you will pay tomorrow

​Necessary Expenses

​Rent/Mortgage

​Car payment

​Car insurance

​Cell phone bill

​Savings

​Gas for Car

​Utilities

​Food

​Money for Personal Hygiene

​Other Expenses

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​Build it into your budget or you shouldn't buy it

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​Using your savings to buy large purchases is a good idea but set a goal so you don't overspend and leave yourself with nothing.

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Do not impulse buy! Beware of instant gratification.

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​Instant Gratification

• ​Instant gratification is a problem in today's world

• ​You must work to overcome it if it is a problem for you

• ​Some don't realize it is a problem until they get into financial trouble

​Delayed Gratification

​This is our goal

​

​It is where you delay doing or getting something so you can get something later maybe something bigger and better.

Multiple Choice

Which of the following is the MOST financially responsible decision?

• Tommy gets $50 for his birthday from his grandma. He spends $75 on Xbox games

• Jamal earns $100 lifeguarding. He spent $5 on lunch and put the rest in the bank

• Katrina sold her old bike helmet for $10 to a friend. She gave the $10 to her favorite charity.

• Stacy was paid $25 for helping her neighbor in the yard. She spent $20 on a T-shirt and $5 on ice cream.