6.1 Budget Categories

How do you calculate wealth?

• The amount in a person's bank account.

• The amount of things they have including house(s) and car(s).

• All a person's assets minus their debts.

Tags

CCSS.6.NS.C.5

Select all expense categories that are "needs".

• Utilities

• Car Expenses (gas, loan payment, insurance)

• Netflix

• Cell phone

• Dining out

Which of the following statements about savings is TRUE

• Saving is best for long-term goals only

• Setting aside money each month consistently will help you in the long run when future needs come up

• You should dedicate 20% of your income to computer upgrades each month

• Monthly expenses like utilities should be categorized under saving

Why is it helpful to track your spending for 2 months?

• You can receive higher interest rates for your savings account when you can show how you spend your money

• You can receive special discounts at certain stores when you can show how you spend your money

• To identify your spending patterns and then prioritize your needs, wants, and savings goals

• To eliminate all spending on your wants

If you have a monthly income of $1400, how much should you set aside for wants if you are following the 50/30/20 rule?

Tags

CCSS.6.RP.A.3B

Looking at this person's list of monthly expenses, what is the total amount in the "need" cateogry?

$100 toward emergency fund

$750 in rent

$200 in groceries

$75 for cell phone bill

$80 for streaming services

$100 for gym membership

$250 toward student loan debt

$300 car payment

$85 for gas

$350 for insurance (all types combined)

Tags

CCSS.7.EE.B.3

Which is true of the zero based budget strategy?

• You always make sure your bank account hits zero at the end of the month.

• You account for every penny even if it goes into savings or an emergency fund.

• You spend extra on things even if you don't need them to zero out each category.

• You spend zero on wants and focus only on needs.

Bianca has take-home pay every month of $800. She anticipates having $675 of expenses in August.

In a zero-based budget, why is it important that she put the extra $125 in some budget category?

Tags

CCSS.7.RP.A.2C

Do you like the 50/30/20 Rule or the Zero budget strategy better? Why?