The Financial Road Sign on the 50/30/20 Rule- Asher Lott

What is a budget?

• A personal financial record of all your transactions

• A plan for how to manage spending and saving money

• A means of guaranteeing financial protection against various risks

• Income earned from allowing someone else to use your money

_____ of income goes to living expenses and necessities (needs)

• 50 %

• 30%

• 20%

• 75%

______ of income goes to flexible spending (wants)

• 50 %

• 30 %

• 20%

• 75%

______ of income goes to meeting financial goals

• 50 %

• 30 %

• 20 %

• 75%

Organize these options into the right categories

Groups:

(a) Needs

,

(b) Wants

,

(c) Goals

• Transportation

• Insurance

• Travel

• Invest in Stock Market

• Vacation

• Utilities

• Build Emergency Fund

• Disney World

• Eating Out

• Grow Savings Account

• Rent

• Groceries

• New Shoes

• Reduce Debt

• Mortgage

• Netflix