Budget 101
What is a Budget?
A "spending plan" or "roadmap" that helps you manage money for needs, wants, and savings.
What is Savings?
Savings is the portion of income not spent on current expenses, set aside securely for future use
What is a need?
Needs are the essential things humans must have to live, stay safe, and be healthy
When you subtract your expenses from your income should you have money left over?
Yes, if you do not, then you may need to make some changes.
Sally only has a $10 budget for her lunch. She really wants Pizza. What pizza place is in her budget?
A. Domino’s small pizza for $9.99 plus tax
B. Big John’s $5 plus tax per slice
C. Pizza Hut personal pan Pizza $5.99 plus tax
D. Papa Johns Small Pizza $9.99 Plus Tax
Why should you budget?
Manage your money, reduce your reliance on credit, save money, and reduce stress
Why would someone want to save money?
Emergencies, Medical expenses, College, large expenses, a new home or even vacation
What is a want?
A "want" is something nice to have but not needed to live, or stay healthy
If you are spending too much money, what is the first thing you should adjust?
Your wants should be the first thing you visit when reevaluating your budget.
Peter has $75 left over in his budget to do something fun for the weekend what can he do?
A. Go to Disney World
B. Fly to Hawaii
C. Go to the movies
D. Have beach day
What is income?
Money earned can be monthly, weekly, or even daily.
Why do people put money in a bank/Credit Union instead of keeping it at home?
Your money is safe from being stolen or damaged by natural disasters
Is candy a want or need?
A want
Yes. Bills may increase. New expenses can occur
Caleb is saving $25 a month for a PlayStation game that costs $70. How many months Does Caleb have to save?
A. 1 month
B.2 months
C.3 months
D.4 months
What are expenses?
Expenses are the money we spend to buy things we need or want, like bills, food, or to keep a business running.
Why should you save for emergencies?
Having savings helps you handle unexpected expenses without affecting your daily finances or adding debt.
is having a phone a want or need?
A need
If you don't save money for emergencies what can happen?
You can get into debt
Jessica wants to buy her mom a nice Mother’s Day gift. Money is tight. What can she do to help her save money?
A.Pack her lunch for work
B. Paint her own nails instead of going to the beauty salon
C. Eat out less
D. All of the above
Calculate all your income. Add up all your expenses. Subtract your expenses from your income.
Income-expenses=?????
Maria wants to save $1200 for a trip to Disney World. If she saves $100 a month, how long will it take her to reach her goal?
12 months/one year
Clothing is considered a necessity, but do you need designer clothes?
No, that is a want to have name-brand items.
What is important when trying to budget and save?
Never spend more than you make and always stay consistent with your budget plan
After paying expenses, Brian has $600. He plans to save half in his savings account and the other half in his checking account. How much will he save?
$300 will be placed in each account