Budgets

Budgets

Definitions

Budget

An outline of the money a person or family expects to receive and spend

Definitions

Short Term Budget

Plan for expenses that will occur within a brief period of time, usually a month

Definitions

Long Term Budget

Plan for major financial decisions that may not arise until years later

Definitions

Income

—All money coming in

—

—Examples:  Salary, allowance, gifts

Definitions

Expense: All money that is spent

Fixed Expense: Remains the same each

month

—

Examples:  rent, mortgage, car payment

Variable Expense: Changes from month to month

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Examples:  clothing, food, gas…

Definitions

Disposable Income

Another word for net pay

Definitions

Discretionary Income

Amount of income after the essentials (food, clothing, shelter) have been taken care of. 

Definitions

Debt

Money that is owed

Definitions

Savings

Putting money aside for furture use.

What are the advantages of a budget?

Are there any disadvantages?​

Benefits of budgeting

• Gives you control over your own money

• Helps you focus on your financial goals

• Makes it easier to ​stay aware of your savings and debts

• ​Helps you save for emergencies or unexpected costs

• It can help lead to a happy retirement

What information is needed to make a monthly budget?

What items in a budget might change from month to month?

1. Your utilities may change

2. You work on commission

3. You are self-employed

4. You have special events coming up

How to set up and maintain a budget

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Tips for maintaining a budget

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Multiple Select

What are some items you might save up for using a long-term budget?

• New Shoes

• New House

• Spring Break Vacation

• College

Open Ended

Below is a copy of Sue’s monthly budget for April. 

What is the difference between Sue’s planned expenses and her actual Expenses?

Open Ended

Below is a copy of Sue’s monthly budget for April. 

What is the difference between Sue’s actual total income and her actual total expense? 

Multiple Choice

Does Sue go over her monthly income or does she experience surplus?

• She goes over her monthly income

• She experiences surplus

Multiple Select

In what areas did she overspend?

• Food

• Credit Card

• Miscellaneous

• Utilities

• Clothing

Multiple Select

In what areas did she spend less than she planned?

• Food

• Credit Card

• Savings

• Utilities

• Clothing

Open Ended

What could be a reason why her miscellaneous expenses were so high this month?