Budgeting

Budgeting is crucial to your financial success.

• True
• False

If an expense can NOT be removed from your budget to save money, it is considered a _____.

• Income

• Want

• Need

• Savings

When making a budget, a person’s needs should come before their wants.

• True

• False

If an expense can be cut from your budget to save money, it is considered a ______.

• want

• need

• income

• savings

Of all the choices, which one should you budget for first?

• Groceries

• Entertainment

• Cell Phone Bill

• New Car

What is a need?

• Something you must have

• Something you'd like to have

• Something you would like to do

• All of the above

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

• You cannot create a budget that has both needs and wants included -- you need them each in a separate budget

• 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

Creating a budget can make you feel powerful! Why?

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

• 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

• Budgeting is extremely easy, so once you set it up, you are done for good and can spend time on other things

The two main portions of a budget are...

• the money coming in (expenses) and the money you're spending (income)

• the money coming in (income) and the money you're spending (expenses)

• the cash you are spending in stores and the bills you are paying online

• the items you want to buy and the money you need to save for retirement

James has just moved into his own apartment and is working full time. Each item below would go into his budget in the "Monthly Bills" category EXCEPT...

• Clothing

• Cell phone plan

• Rent

• Renters insurance