Personal Finance - Budgeting Review

What items do you currently NEED to spend money on currently?

• Groceries

• Electronics

• Entertainment

Now, imagine yourself as a junior in high school who has a part-time job. Your spending as a high schooler will most likely be:

• Higher than your current spending as a middle schooler

• Lower than your current spending as a middle schooler

• The same as your current spending as a middle schooler

• Nonexistent

How can Shaun explain to his cousin the difference between gross pay and net pay?

• Gross pay is the total amount earned before deductions, while net pay is the amount left after deductions.

• Gross pay is the amount after taxes, while net pay is before taxes.

• Gross pay and net pay are the same thing.

• Gross pay is what you receive in cash, net pay is what is deposited in the bank.

Shaun should use which of the following when creating his budget?

• Gross pay

• Net pay

• Both gross and net pay

• Neither gross nor net pay

Why do we pay taxes? What is tax money used for?

• We pay taxes to help fund things like schools, roads, and hospitals.

• We pay taxes to buy personal items for ourselves.

• We pay taxes to save money for vacations.

• We pay taxes to help only the government officials.

Why is it important that we understand the importance of identifying needs vs. wants?

• It helps make better financial decisions.

• It is not important to know the difference.

• Wants are always more important than needs.

• Needs and wants are the same.

Identify which of Shaun’s purchases are considered NEEDS vs WANTS by placing them in the appropriate columns. Items: Gasoline for car, School Supplies, Video Games, Snacks, Netflix subscription, Phone Data, Haircuts, Clothes. Fill in the table with the correct items under 'Needs' and 'Wants'.

• Needs: Gasoline for car

  Wants: Video Games

• Needs: Netflix subscription

  Wants: Haircuts

• Needs: Snacks

  Wants: Clothes

• Needs: Video Games

  Wants: Phone Data

What are the main aspects of EVERY budget?

• Income, Expenses, Savings

• Wants, Needs, Investments

• Assets, Liabilities, Equity

• Revenue, Costs, Profits

Look at the pie chart. Fill in the blanks: 50% = ____________ 30% = ____________ 20% = ____________

• 50% = Needs, 30% = Wants, 20% = Savings

• 50% = Savings, 30% = Needs, 20% = Wants

• 50% = Wants, 30% = Savings, 20% = Needs

• 50% = Needs, 30% = Savings, 20% = Wants

If your net pay is $100 every two weeks, how much money do you have to spend monthly?

• $100

• $400

• $50

• $200