Budgeting basics
The plan for saving and spending
What is a budget?
50% of your income should go to
Needs
You budget because you want to save this?
want to save money.
Budgeting gives you ______ over your money.
control
Money that comes in
Something you cannot survive without
Need
You need to differentiate between these when you are budgeting.
wants vs needs.
Making smart decisions with your money helps you stay out of this
Why are you never to young to learn how to budget?
it is important to know what to do with money in your life
The two pieces of information you need to create a budget
What are Income and Expenses?
Food is an example of this
Needs
Instead of spending all of your money right away, putting some aside for later is called this
Saving
A big reason to budget is so that you don't loose this.
money.
Budgeting can help you organize this.
spending and savings
You have $20. You spend $8 on lunch and $5 on a game. This is how much money you have left
$7
Something that would be nice to have but you can survive without
Want
30% of your income should go to
Wants
When you make a budget, deciding what is most important and making sure your money goes toward these things first is called
Setting priorities, goals
A benefit of budgeting is so you can always have money for_______. (unexpected)
emergencies.
The income MUST EQUAL or be more than
Expenses
What budgeting category is going to the movies with friends?
Wants
20% of your income should go to
Savings
This is the reason we need to budget
so you do not go into debt or overspend money
This is the person who makes budgeting decisions about your money
You
It is helpful to follow this rule when budgeting
The 50/30/20 rule