What is a budget
Name one expense your parent pays every month
answer varies could be rent, gas, electric, water, mortgage, car payment, insurance, etc
Items that we buy fall into what two categories (hint it's in the title of this category)
needs and wants
what percentage of your budget should go towards your needs?
50%
what is the biggest deduction that comes out of your pay
federal income tax
The money you are paid before taxes is called?
Gross pay
a powerful tool that you can use to manage your money
budget
Give one example of a need
answer may vary clothes, food, shelter, water, electricity
What percentage of your budget should go towards wants?
30%
What is one thing that our federal tax money is used for
military, education, transportation, health
The money you are paid after taxes is called
net pay
money you earn is called _____________
income
give one example of a want
answer may vary new shoes, dinner out, new phone, etc.
What percentage of your budget should go towards savings?
20%
who pay income taxes
anyone who is legally working
besides federal income taxes, name another deduction that comes out of your pay
social security, state and local taxes, healthcare
money that you spend is called your __________
expenses
LUCKY WINNER!!!!
Lucky Winner!!!
True or False Setting aside money each month consistently will help you in the long run when future needs come up.
true
What does the government do if it doesn't have money to fund its programs?
Should you use gross or net pay when making a budget? Why?
you should use net pay because that is actually the amount that you receive
Why is creating a budget and sticking to it important?
Why is it important to identify your needs and wants when doing a budget
It is important to know your needs and to pay them first because they are necessary. If money is left over, then you can purchase some of your wants
what is the difference between gross pay and net pay
gross pay is the money you make before taxes and net pay is the money you make after taxes
Name 3 top things that our federal income tax fund?
military, health, education, social security, transportation
money that you earn from a job is called _______
income