Unit 3 Savings and Budgeting

What does deposit mean?

• taking money out of an account

• putting money into an account

Savings accounts are really great for

• Long term goals or emergencies

• Wants

• Immediate needs

• Current bills

What is the first step in creating a personal budget?

• Create a savings plan.

• Determine income and expenses

• Track spending habits.

• Set financial goals.

Why is it important to track expenses?

• To have less control over finances, overspend, ignore financial goals, and waste money.

• To achieve financial goals, save money, manage finances, and identify overspending.

• To manage and control finances, identify overspending, save money, and achieve financial goals.

• To increase debt, ignore financial goals, overspend, and mismanage finances.

How can setting financial goals help with budgeting?

• Setting financial goals helps individuals track their expenses and identify areas where they can cut back on spending.

• Setting financial goals allows individuals to better understand their financial situation and make necessary adjustments to their budget.

• Setting financial goals helps individuals develop a long-term financial plan and make strategic decisions about their money.

• Setting financial goals provides direction and motivation for saving and spending, allowing individuals to prioritize expenses and make informed decisions about where to allocate their money.

House Payment/ Mortgage

• Fixed Expense

• Variable Expense

Car Insurance

• Fixed Expense

• Variable Expense

Groceries

• Fixed Expense

• Variable Expense

The Brown family orders pizza from Eat Around Pizza on special occasions. Sometimes they add a side of wings, and sometimes they don't.

Is the money the Brown family spends at Eat Around Pizza a fixed expense or a variable expense?

• Fixed Expense

• Variable Expense

The Jones family has cable television at their house so they can watch their favorite shows. They pay $85 a month for the cable television.

Is the money the Jones family spends on cable television a fixed expense or a variable expense?

• Fixed Expense

• Variable Expense