Budget
A plan for how to allocate, spend and save your money.
What is a budget?
Any money received or earned from working, investments, or other sources, such as allowance.
What is income?
Monthly costs that do not change, such as rent or car payments.
What are fixed expenses?
Money that is set aside for later use or a future goal.
What are savings?
You want to buy a car. Name one cost you will have to budget for besides the initial car price.
What is insurance, gas, registration, maintenance, etc.?
Costs to budget for that are necessary for survival, like food, housing, and transportation.
What are needs?
What is an entrepreneur or self-employed person?
Monthly costs that can change, such as groceries or gas.
What are variable expenses?
A bank account used for storing money long-term and for earning interest.
What is a savings account?
You lose your job. What financial safety net/specific budget category should you rely on?
What is your emergency fund?
Costs to budget for things that are nice to have but not essential.
What are wants?
Money earned indirectly from investing in stocks, savings, or properties owned.
What is passive income?
Costs that arise that are sudden or that a person does not plan for, such as medical bills, car repairs, or emergency vet appointments.
What are unexpected expenses?
This type of savings fund is specifically for future unforeseen circumstances.
What is an emergency fund?
You forgot to budget for car repairs. This type of savings fund can help.
What is an emergency fund?
A method of budgeting where you divide income into 50% needs, 30% wants, and 20% based on priority.
What is the 50/30/20 rule?
Money earned from a business or job where you are actively working and exchanging your time/effort for money – examples include wages, salaries, and tips.
What is active income?
Name 4 non-essential expenses you might have in a month.
What are...(differing answers based on person)?
Name 2 examples of possible short-term savings goals in your life.
What are concert/event tickets, Christmas and Birthday gift planning, vacation, and new phone/electronics (answers will vary per player)?
You get a raise. What should you do before increasing spending?
What is update your budget?
Tracking spending and reaching financial goals are two examples of why...
Why is budgeting important?
A type of tax that requires people or businesses to pay money to the government, based on how much money they earn.
What is income tax?
Cutting back on wants, comparing prices, or cancelling subscriptions are actions a person can take when they want to reduce...
What are monthly expenses?
Name 3 examples of possible long-term savings goals the average person may
What is buying a car, buying a house, retirement, or tuition for higher education (answers will vary per player)?
Your take-home income (after tax) is $1000. Using the 50/30/20 rule, if $500 is for needs, $300 is for wants, how much money will be allocated for savings?
What is $200 for savings?