Challenge Round
Give one example of fixed income
Salary, pension, Social Security
What is a budget?
Plan for money: spending/saving
What is a personal goal?
Life, Hobbies, Health
What is income?
(Money earned)
Give one example of a gray-area expense.
(Phone, internet, etc.)
Give one example of variable income
Tips, commission, freelance)
Why is budgeting important?
Avoid overspending, reach goals, reduce stress
What is a financial goal?
(Related to money: saving, earning, investing
What is an expense?
(Money spent)
Is food a want or a need?
(Need)
What’s the difference between measurable and time-bound in SMART goals?
Measurable = how much/how many; Time-bound = by when
What happens if your expenses are greater than your income?
(You go into debt / overspend)
Short-term vs. long-term: saving for prom dress?
Short Term
Give one example of fixed expense.
(Rent, car insurance,
Is a new iPhone a want or a need?
(Want)
Which expense would you cut first in a budget crisis, fixed or discretionary?
Discretionary
Why is it important to include savings as a part of your budget?
(To prepare for emergencies, future expenses, and long-term goals)
What does SMART stand for?
Specific, Measurable, Achievable, Relevant, Time-bound
Give one example of variable expense.
(Groceries, gas, utilities
Define “need” in financial terms.
(Essential for survival/living)
Why is it harder to budget with variable income?
Income is unpredictable, planning is harder)
What does budget rely on
balance
What does the S in SMART goal stand for?
Specific
Give one example of discretionary expense.
(Netflix, eating out,
Why is knowing wants vs. needs important when budgeting?
(Prioritization of spending)