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
With a net pay of 3,000, how many dollars can you get for your wants?
30% wants \(\$900\)
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 like ever dollar, goal-setting strategies
With a net pay of 1,500, how much do you have for savings
20% saving (300)
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
With a net pay of 8,000, how much do you have for needs?
50 ($4,000)
What categories make up the 50/30/20 rule?
needs, wants, and savings.
What is the difference between Income and Expense
?
Income is the money you make, and expenses are the money you spend.
What apps can help you save money ? What apps do you have money on?
Like YNAB, Rocket Money, and Apple Cash, Venmo, etc
With a net pay of 2500, how many dollars for your savings
20% ( 500)
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.
What is your savings income?
$2,000
How many years' worth of income should you have saved up for retirement?
40+ years
With a net pay of 6,000, split it using the 50/30/20 rule
50 ( 3000), 30(1800) , 20 ( 1200)