Unit 3 Budgeting Review

A breakdown of your income and expenses for a set period of time

The two main portions of a budget are...

• income

• retirement

• expenses

• Christmas gifts

Things you have to have; these are essential

Why is it important to be able to decide if an item is a NEED or a WANT?

• Needs can be very expensive, but wants are usually far less expensive so you don't need to keep track of them

• Needs are worth spending money on, but you should never spend on a want

• When you budget, you should make sure all your needs are met first, then you can decide to spend on wants

Putting aside money for future use

Creating a budget can make you feel powerful! Why?

• People who budget earn more money, so they can live a better life

• A budget puts you in control of your spending and saving, so you make good decisions and feel more confident

• You can't really budget unless you have an important job, which means that other people look up to you

Jennifer's part-time job pays her $5 per hour. She works for 10 hours this pay period. How much is her gross pay?

• 5

• 15

• 50

Brent receives his paycheck, and it says his gross pay is $415 and his net pay is $300. How much money did he have in deductions this pay period?

The amount of money you receive in your paycheck after any deductions or taxes are taken out

a tax on the income of a person or business