Budgeting review

Choose the appropriate place for each account.

Groups:

(a) Emergency fund

,

(b) Sinking fund

,

(c) Investment account

• Later on it should cover 3-6 months living expenses

• Saving for retirement

• For short- and medium-term saving

• For long-term saving

• For big planned expenses

• Vacation

• For unexpected expenses

• Your first and highest priority

• At first it's $1000

Match!

essential - (a)  

discretionary - (b)  

• need
• want

Money in - money out =

(a)  

Money in (a)   money out (b)   0

• -
• =
• +
• /
• <
• >
• *

If Tina's expenses are greater than her income, what are two actions can Tina take to balance her budget?

• Increase her expenses

• Decrease her expenses
• Decrease her income

• Increase her income

What is a good strategy to help you save?

• Take care of your discretionary expenses first; hen put what's leftover into saving

• Tap into your savings on a regular basis to purchase small items, like snacks

• Pay yourself first - set aside money for savings each month

• Keep your spending and saving money together in 1 account

• Take care of your essential expenses first, then put what's leftover into saving

An emergency fund should NOT be used for…

• fixing a blown tire on your car that you use to get to work.

• repairing a broken pipe that's causing your basement to flood.

• a last-minute hair cut before prom.

• a sudden health issue that needs care.

Match the account to the time period.

• Sinking fund

• Long-term

• Checking account

• Day-to-day

• Investment account

• Short- or medium-term

Pay yourself (a)   . Pay for your essentials​ (b)   .

• first
• second
• third

This helps you prepare for unexpected expenses.

• Credit cards

• Checking account

• Emergency fund

• Sinking fund