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.

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.

Multiple Choice

The amount of money you take home is called your

• Net Pay

• Gross Pay

• Total Pay

• Available Pay

Multiple Choice

Which of the following is generally the most expensive category in a person’s budget?

• Healthcare

• Clothing

• Transportation

• Housing

Multiple Choice

Find the best definition for the underlined word:

An estimation of income and expenditure for a set period of time

• Rough Calculation

• Total goods

• Guess

• Random Number

Multiple Choice

Find the best definition for the underlined word:

An estimation of income and expenditure for a set period of time

• Expenses

• Money received through work or investments

• Cash

• Credit

Multiple Select

Find the best definition for the underlined word:

An estimation of income and expenditure for a set period of time

• Money earned

• Credit earned

• Money spent

• Money lost

Multiple Select

Based on the video...

What are the two ways that you can fix an unbalanced budget?

• Increase income

• Make more money

• Ask an accountant to review your budget

• Decrease expenses

Multiple Select

Check all of the options most likely to be considered 'non-essential'

• *Perrier Water

• Clothes

• Netflix Subscription

• Gas

• Electricity

Multiple Select

Check all of the options most likely to be considered 'essential'

• Electricity

• Rugby tickets

• Parking tickets

• Groceries

• Gas

Multiple Choice

If an expense can NOT be removed from your budget to save money, it is considered a _____.

• Income

• Want

• Need

• Savings

Multiple Choice

Preparing a budget includes

• Income, Expenses, Saving
• Only listing your expenses
• Only listing your debts
• Only listing your income

Multiple Choice

Examples of Fixed Expenses include:

• Mortgage, loans, rent
• Cable, entertainment, food
• Gas, food, phone
• Clothing, gas, food

Multiple Choice

Which one is a fixed (same amount, same time) payment?

• food

• power

• mortgage

• petrol

Multiple Choice

Car Payment

• Fixed Expense
• Variable Expense

Multiple Choice

Fixed or variable expense: Groceries

• Fixed

• Variable

Multiple Choice

Fixed or variable expense: Rent?

• Fixed

• Variable

Multiple Choice

Utilities

• Fixed Expenses
• Variable Expenses

Multiple Choice

Gas

• Fixed Expense
• Variable Expense

Multiple Choice

Car Insurance

• Fixed Expense
• Variable Expense

Multiple Choice

Entertainment

• Fixed Expense
• Variable Expense

Multiple Choice

Dining Out

• Fixed Expense
• Variable Expense

Multiple Choice

Homeowner's Insurance

• Fixed Expense
• Variable Expense

Multiple Choice

Clothing

• Fixed Expense
• Variable Expense

Multiple Choice

Medical care is an example of a ______

• Need 
• Want

Multiple Choice

What is gross pay?

• The money that you earn before taking out deductions

• The money that you earn after taking out deductions

Multiple Choice

What is net pay?

• The money that you earn before taking out deductions

• The money that you earn after taking out deductions