Budgeting Skills 2.1

• Categorize expenses

• Differentiate between wants and needs

• estimate variable expenses

​

​2.1 Budgeting

Brain Teaser

Our friend, Darius gets a new job at ABC Cars and earning $65,800 a year
This will cover his bills and other needs but he is not sure how much money he will be paid each month. How can we figure this out?

Multiple Choice

If Darius divides his salary of $65,800 across 12 months, how much money do you think will go into his bank account each month?

• $5,483

• $3,672

• $5,800

• $6,580

Multiple Choice

A salary is a fixed payment. Typically...

• Per Hour

• Every Ten Years

• Monthly or Biweekly

Rent/Mortgage
Food/Groceries
Utilities
Transportation
Insurance
Savings

​

What is a budget?

Multiple Choice

What is Income?

Multiple Select

Which TWO of the following expenses would fall under the "Utilities" category in a budget?

• water bill

• electricity bill

• grocery shopping

Rent, Mortgage, cell phone bill, car payment, car insurance

THEY STAY THE SAME EACH MONTH

Fixed Expenses

Utilities - changes season to season

Gas for your car

Cost of Groceries

Variable Expenses

Categorize

Options (8)

electricity bill

gas for the car

groceries

water bill

mortgage or rent

cell phone bill

car payment

car insurance

Organize these options into the right categories

Variable Expense

Fixed Expense

food
housing
utilities
clothing
healthcare

Needs

entertainment
fashion items
dining out
travel

Wants

​Prioritizing Spending

Categorize

Options (8)

Groceries

electricity

water

health insurance

starbucks

Gucci Purse

Playstation 10

Steak Dinner

Organize these spending options as needs or wants

Needs

Want

Audrey is planning a trip with her friends this March.

They figured out the cost of the trip will be $1,000; $700 for the hotel, transportation, food and another $300 for shopping.

After paying all of her bills in February she only had $725 left in her account for the trip, now she has to borrow $275 from her friends

​

​Role Play Scenario

Role Play Scenario Continued

Audrey decides to create a budget to avoid this issue in the future. If she created a budget similar to the one shown she could have planned better

Aubrey had another option after all. Instead of spending her leftover money each month she could have saved it.

Money set aside for future needs/goals, accrues interest

​

Savings 101

buying a car
paying for college
going on vacation
buying a home

Retirement and Big Purchases

medical expenses
car repairs
home repairs
job loss

Emergency Fund

​Savings Continued

Multiple Choice

What is a savings account primarily used for?

• spending money on immediate wants and desires

• safely storing and accessing money for future needs or goals

• paying off debts and loans.

Poll

Do you have your own checking/savings account?

• Checking Only

• Savings Only

• Neither

• Both

categorize expenses

understand the difference between a want and a need

estimate variable expenses

​

Budgeting Recap

Multiple Choice

Money earned by an employee in one year.

• Overtime

• Weekly wages

• Tips

• Annual wages

Multiple Choice

What is the main goal when creating a budget?

• To save money

• To have a balanced budget

• To spend more than you earn

• To avoid expenses

Multiple Choice

What are the key components of creating a personal budget?

• Categorizing expenses

• Differentiating between wants and needs

• Estimating variable expenses

• All of the above