Budget Basics 1
A plan for spending and saving money each month
Budget
Money given in exchange for working
Pay
If Mark works 20 hours/week, at a rate of $15.00/hour how much will his gross pay be?
$300.
Money put away into a bank to use for later or for an emergency
Savings
Items or things you would like to have but are not necessary
Wants
Things you must have to survive (food, water, shelter) or to have personal success
Needs
You put every dollar of your net pay into a budget category each month
Zero-Based Budget
Money set aside for "sharing"
Donation
Setting aside a fraction of your paycheck into a savings account before you start spending
Pay Yourself First
You earn a salary of $80,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?
1 year
"take home" pay after taxes
Net Pay
Money earned on a regular basis. (sometimes for chores)
Allowance
Necessary purchases (food, water) are examples of what?
Needs
What you earn in your paycheck before taxes
Gross pay
What is 20% of $40,000
$8,000
An amount that is the same every month (rent, utilities, insurance, etc.)
Fixed expense
price/units for a retail item
unit price
What you like to do, or you are good at doing
Skills
an amount that changes each month (groceries, gas, etc.)
Variable Expense
Money that goes to the Government and comes out of your paycheck is called what?
Taxes
If you start work at 9:30 am and get off at 1:30 PM, how many hours have you worked?
4 hours
If you leave at 7:30AM and it takes you 45 mins to walk to the bus stop what time will you arrive at the bus stop?
8:15 AM
If you work a 6 hour day and start at 3:00 PM, what time will you be off work?
9:00PM
Mr. Bob went to Walmart to purchase a case of water. The water cost $10.98, he paid with a 20 dollar bill. How much change will Mr. Bob get back?
$9.02
If Sam works 40 hours/week, at a rate of $13.20/hour how much will his gross pay be?
$528.