Introduction to Budgeting

A spending plan based on a person's or family's income and expenses.

Fred makes $4,000 a month after taxes. How much money should he set aside for his monthly needs?

$______. Enter a number....

Match allocation correctly the 50/30/20 budgeting rule for monthly income?

• 50%

• Wants

• 20%

• Needs

• 30%

• Savings

A student earns $2,000 after taxes each month. Using the 50/30/20 rule, how much should be set aside for savings?

$_____.

Enter a number...

match.

• want

• Adding money to a College S.P.

• savings

• Concert tickets with friends

• needs

• Groceries for basic meals

Sarah goes to school at a local community college. In addition to her classes, she is part of a work-study program and usually earns about $600 per month. How much should Sarah budget for her needs?

$_____.

Sarah goes to school at a local community college. In addition to her classes, she is part of a work-study program and usually earns about $600 per month. How much should Sarah budget for her wants?

$_____.

Sarah goes to school at a local community college. In addition to her classes, she is part of a work-study program and usually earns about $600 per month. How much should Sarah budget for her savings?

$_____.

Based on the expenses shown, which items should be categorized as needs for Eric?

• Rent, utilities, groceries, car payment, utilities

• Dining out, clothing, online shopping

• Entertainment, savings,

• Groceries, dining out, entertainment

Calculate Eric’s total spending on wants from the list.

$_____