Budget Basics
What is a budget?
A Plan for earning, saving, and spending money
Is food a need or a want
A NEED
You earn $20 babysitting. Is this income or an expnse
Income
You have $50 and spend $20. how much remains
$30
Should you spend all your money as soon as you receive it
NO
What is income
Money you earn or receive
Is a new video game a need or a want
A want
You spending $15 on lunc. is this income or an expense
expense
You save $10 every week. How much will you save in 4weeks
$40
What does it mean to prioritize your expense
To decide which expenses are most important
what is an expense
money you spend
Is paying an electricity bill a need or want
Name two ways students can earn money
Babysitting and mowing lawns.
A shirt costs $25 and shoes cost $40. What is the total
$65
What is an emergency fund
money saved for unexpected necessary expenses
What is an expense
Money you spend
You have $30. You need school supplies but want a video game. What should you buy first
School Supplies
You earn $100 and spend $65. How much money remains
$35
You earn $150, spend $85 and save $30. How much Money do you save
$35
You want shoes that cost $120.You save $20 each week. How many weeks will it take?
6 weeks
what is a balanced
A budget where expenses do not exceed income
Why should you prioritize needs over wants
To make sure important expenses are paid first
What happens when you spend more money than you earn
you overspend and have a budget defict
You earn $200 and save 25%. How much money do you save.
$50
You earn $300, spend $180 on needs, and save $75. How much can you spend on wants
$45