Saving and budgeting

What is a budget?

• A plan for wants and needs

• A plan for income and expenses from the past

• A plan for income and expenses for the future

• A cheap product

If have a budget of $50/week for petrol and then I overspend over several weeks...

• I can keep overspending without any worries

• I should look for another area to overspend in also

• I should look for an area to save in

• I should take less hours to save on petrol

Non-essential spending could be

• Takeaways

• Internet

• Food

• Clothes

If I have a job paying $52,000 per year

• It works out to be $1,000 gross per week

• It works out to be $1,000 net per week

• It works out to be $1,000 per week after tax

• It works out to be $1,000 per week after paye, acc and kiwisaver

What do our taxes NOT get spent on?

• Roading

• Teachers

• Police Officers

• School uniforms

• Hospitals

What does financial literacy mean?

• I cant read money well

• I can manage money by earning and spending wisely

• Reading and writing financial plans

• I can write accounting terms

If I earn income of $52,000 per year and it pushes me into the 30% tax bracket

• I pay tax at 30% of all of my income

• I only pay 30% tax over the $48,000 bracket

• Im going to look for a lower paying job to get into the lower tax bracket

• I petition the government to lower tax rates

What is the name for tax on your income?

• Pay as you go

• Pay as you earn

• Pay as you hussle

• Pay as you work

whats the best strategy to save more money?

• Earn more

• Save more

• Budget, increase income and spend on your wants

• Budget, reduce costs and increase income

I want a house but they are too expensive, I should...

• Study hard and earn a great income

• Budget hard and not spend too much

• Give up as they are all worth $1m+

• Study, budget, earn, save and goal set