MOPF Budgeting

What is the definition of a budget?

• A plan you write down to decide how you will spend your money each month

• It tells you how much money you made over the last year.

• A plan for signing a lease and buying a car.

What two things does a budget "show" you?

• When your car payment is due

  How you spend your money

• How much money you make

  Who you have your car insurance with

• 1. How much money you make 

  2.    How you spend your money  

What are two things you can do when your expenses are higher than your income?

• Write down how you are spending your money so you know where to make cuts.

• Take home lunch instead of going out every day.

• Quit using a budget.

• Don't pay a few of your bills for a month.

When deciding if you should buy something, what is one question you could ask yourself?

• Should I put this in my budget?

• Will not having this negatively affect my life?

• Is this item of clothing in style?

1. All of the following options are considered a “need” EXCEPT…

• Rent

• Gas for your car

• Monthly health insurance premium

• Music streaming subscription

1. All of the following options are considered “wants” EXCEPT…

• 1. Electricity and gas

• New fall sweater

• Netflix subscription

• Eating at your favorite local restaurant

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

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

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

• 1. To eliminate all spending on your wants

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

1. Which category does the 50 pertain to in the 50/30/20 Rule?

• Wants

• Needs

• Savings

1. Which category does the 30 pertain to in the 50/30/20 Rule?

• Savings

• Wants

• Needs

Assume John's monthly post-tax income is $3600. If he's using the 50/30/20 rule, how much money goes into the Savings category?

• $1080

• $720

• $1800