Budget Basics
**DAILY DOUBLE***
What is a budget?
A written plan for how to spend and save your money.
True or False: Netflix is a “need.”
False — it’s a want.
Define gross income.
The total amount you earn before taxes and deductions.
**DAILY DOUBLE** What is zero-based budgeting?
A plan where every dollar is assigned a job until income minus expenses equals zero
Income-Expenses = Zero
95% of Americans think Budgeting is important, but what percentage actually budget?
35%
How many months does it usually take for your budget to start workins as a budget should?
One, three, or five?
Three Months
**DAILY DOUBLE***
Give one example of a need and one example of a want.
Need = groceries, rent, transportation. Want = new shoes, eating out, video games.
Define net income.
The amount you take home after taxes and deductions.
Why does Dave Ramsey say, “Give every dollar a job”?
So money is directed with purpose instead of wasted or lost to impulse spending
**WHOLE CLASS**
What is “paying yourself first”?
Setting aside money for savings/investing before spending on other things.
**DAILY DOUBLE**
What is the difference between a fixed expense and a variable expense?
Fixed expenses stay the same each month (ex: rent, car payment). Variable expenses change month to month (ex: groceries, gas).
**DAILY DOUBLE**
What percentage of your income is recommended for wants in the 50/30/20 rule?
30
If you earn $2,500 a month before taxes and take home $2,000, what is your net income?
$2,000.
**DAILY DOUBLE***
If you earn $1,800 and your expenses add up to $1,600, what do you do with the extra $200 in a zero-based budget?
Assign it — put it toward savings, debt payoff, or another goal — until the balance equals zero.
True of False
Online Budgeting Apps are more effective than pen and paper
False
Use what works best for you
What are the “Four Walls” of budgeting?
Covering the essentials first
food, shelter, utilities, transportation
**DAILY DOUBLE***
Why is it important to separate needs from wants when budgeting?
To make sure essentials are covered first and avoid overspending on non-essentials.
What are payroll deductions?
Money taken out of your paycheck for taxes and benefits. Examples: Social Security, Medicare,
How does a zero-based budget help stop overspending?
Because every dollar is tracked, you can’t “lose” money or forget where it went.
Give an example of how social media can create pressure to spend money.
Influencers and ads make you want to buy things you don’t need (ex: clothes, trips, gadgets).
Name the two types of Budgets we learned about
Zero Based Budget
50/30/20 Rule Budget
Paying for gas to get to school is a need or a want?
Need
Which amount is larger on a paycheck Gross or Net income?
Gross
What’s the biggest myth people believe about budgets?
That budgets are restrictive — in reality, they give you more freedom and control.
What’s one money habit you can start now that will pay off in the future?
saving regularly, tracking spending, avoiding debt, investing early, sticking to a budget.