50/30/20 Rule
Name 2 examples of needs
Rent, Utilities, Food, Transportation, Insurance, Basic clothing...
What is a budget?
A budget is a plan that helps you manage your money
Name a savings acount
Cd
How much is your 50/30/20 for your Net pay of $3,000
50\(\$1,500\)30 \(\$900\)20\(\$600\)
Name 2 examples of wants
hobbies, entertainment, eating out, shopping, travel...
What can a budget help with?
Tracking income and expenses
Setting and achieving goals
Avoiding or reducing debt
Name a method people use to set money aside
deposit, piggy bank, budget, apps, goal-setting strategies
How much is your 50/30/20 for your Net pay of 4,000
50\(\$2,000\)\ 30 (\$1,200\)\20 (\$800\)
Name something you would save for:
Emergency fund, retirement, college
What is debt?
When income is less than expenses
What is a Business expense
Rent and Utilities
How much is your 50/30/20 for your Net pay of 5,000
50\(\$2,500\),30\(\$1,500\),20\(\$1,000\)
What categories make up the 50/30/20 rule?
needs, wants, and savings.
How much is your 50/30/20 for your Net pay of 6,000
50\(\$3,000\)30 \(\$1,800\)\ 20(\$1,200\)
How is the 50/30/20 rule divided?
50% of your income on your needs, 30% on your wants, and 20% on your savings.
You have a monthly income of $4,000. You plan to follow the 50/30/20 rule for budgeting.
How much of your monthly income should be going towards needs?
$2,000
How many years' worth of income should you have saved up for retirement?
40+ years
How much is your 50/30/20 for your Net pay of 7,500
50\(\$3,750\) 30 \(\$2,250\) 20\(\$1,500\)