Budgeting
What is a budget?
A plan for how you earn and spend your money.
Is food a need or a want?
Need.
What is the purpose of a savings account?
To safely store money and save for the future.
What is impulse buying?
Buying something without planning or thinking first.
Ashley has money left after paying for school, rent, groceries, and her phone. What should she do with some of it?
Save some money.
Money you receive from working is called what?
Income
Is the newest iPhone a need or a want?
Want
If you earn $500 and save 10%, how much do you save?
$50.
Which is usually smarter:
Buying because you're bored or because you planned for it?
Buying because you planned for it.
You receive $100 for your birthday. You want a $90 pair of shoes but also need school supplies. What should come first?
School Supplies
If you make $400 and spend $250, how much money do you have left?
$150.
Name three basic needs.
Food, shelter, transportation, clothing, medicine.
Name one benefit of saving money.
Emergency fund, future purchases, less stress, reaching goals.
What does "living within your means" mean?
Spending less than or equal to what you earn.
You forgot to budget and now don't have enough money for food. What lesson did you learn?
Plan and budget before spending.
Name two monthly expenses.
Rent, food, utilities, phone, transportation.
Before buying something, what are the three questions you should ask yourself?
True or False:
You should save money after buying everything you want.
False
Name one sign that something could be a scam.
It sounds too good to be true, asks for personal information, promises easy money.
A friend wants you to spend all your paycheck going out. What is the smartest decision?
Stick to your budget and only spend what you can afford.
Matthew earns $696.60 each month but spends $825. Is he over or under budget?
Over budget by $128.40.
Why is it important to know the difference between needs and wants?
It helps you make smart financial decisions and avoid overspending.
Give two ways teens can save money.
Use coupons, avoid impulse buying, limit eating out, buy used items, save a percentage of each paycheck.
What is one financial mistake many people make?
Spending every paycheck, buying to impress others, ignoring bills, or not saving.
You have $300 left after paying all of your bills. What are three smart ways you could use that money?