Budgeting: 101

What is a budget?

• A plan you use when your house is in foreclosure.

• A plan you use to see how much money you make every other year.

• A plan you write down to decide how you will spend your money each month.

• A plan you use to file your taxes.

A budget shows you...

• how much money you make and how much money you spend.

• how to use percentages.

• how to operate a credit card.

• how ask the bank for more money.

What is a salary?

• A fixed amount of money paid to the worker, usually measured on a hourly basis.

• A fixed amount of money paid to the employer, usually measured on a monthly or yearly basis.

• A fixed amount of money paid to the employer, usually measured on a hourly basis.

• A fixed amount of money paid to a worker, usually measured on a monthly or yearly basis.

How do you determine your monthly salary from your yearly salary?

• You need to divide your monthly salary by how many weeks there are in a year.

• You need to divide your yearly salary by 100.

• You need to divide your monthly salary by how many days there are in a year.

• You need to divide your yearly salary by how many months there are in a year. 

What are utilities?

• Basic services your home, apartment, or business needs to keep it comfortable and functioning properly.

• Basic services you want in order for your home, apartment, or business to have guests over.

• Basic services you need in order for your home, apartment, or business to have no interest rates.

• Basic services your home, apartment, or business has to keep it from getting a lower credit score.

What is a loan?

• A loan involves finding money your co-worker was looking for and giving it back to them.

• A loan involves borrowing a part of the total from a lender, & making regular (often monthly) payments until the loan is entirely repaid.

• A loan involves taking money from your employer without telling them, then replacing it with a lower amount.

• A loan involves borrowing a part of the total from a lender, & never paying it back.

What does it mean to "go over budget"?

• It means you borrowed enough money to pay your bills.

• It means you borrowed not enough money to pay your bills.

• It means you spent more money than what you made.

• It means you spent less money than what you made.

What are some consequences of "going over budget"?

• Not being able to have a bank account, higher credit score, and getting your utilities shut off.

• Not being able to go to work, have a credit card, and write a check.

• Having to give money away, credit card applications become available, and utility bills are easier to repay.

• Having to borrow money, debt, lower credit score, foreclosure, and getting your utilities shut off.

What is a "down payment"?

• It is a percentage of the purchase price that you pay out of pocket.

• It is a percentage of the purchase price that is turned into a loan for you to repay.

• It is the interest rate you have to pay on a car.

• It is the tax price given for a car.

An accurate monthly budget can help you...

• increase your yearly salary.

• find where you can borrow money.

• reach your financial goals!

• increase your taxes.