MONEY BASICS
These are some terms used for the amount of money earned by working a job.
What is income, earnings, take home pay, or salary?
When creating a budget, it is important to set goals you can achieve.
What is yes?
You budget your money so you have enough to pay your bills and live independently.
What is true?
I can spend as much as I want on my debit and credit cards.
What is no?
Your debit card is your bank account (only has the money you put in it). If you go over the money you have in your account, it is called an overdraft fee.
Your credit card only lets you spend a certain amount of money (credit limit). If you over spend on your credit card, you are charged large fees.
I have $20 to buy lunch for the week. Can I buy the sandwich makings and chips below and stay within my budget?
Deli meat = $5.00
Swiss cheese slices = $3.00
Loaf of bread = $3.00
Jar of mayo = $3.00
Hot Cheetos = $4.50
What is yes? Total of all the items is $18.50.
All the things a person spends money on to meet their needs is called expenses.
What is true?
One reason it is important to put a small amount of money into savings each month.
What is you need to have money for emergencies (house/apartment repairs, replace broken items, flat tire, etc..)?
3 examples of "emergencies" that you might need to spend money on.
What are:
-car repairs
-medical bills
-house/apartment repairs
-replace clothing
-new bike chain
You need to do this if you lose your debit or credit card.
What is call your bank or your credit card company and cancel it and ask for a replacement card?
After paying all your bills, you have $100 left to spend on clothing. Do you have enough to buy a pair of jeans, a t-shirt, and a bag of socks?
Jeans = $60.00
Socks = $10.00
T-shirt = $20.00
What is yes? The subtotal would be $90.00. With taxes, the total would be just under $100.00.
Paying your rent is an example of this. Want or need?
What is a need?
One reason it is important to pay your bills first before you spend money on things you want.
What is if you spend your money first, you may not be able to pay your bills?
Explain what might happen if you can't pay your bills.
What is you can be evicted from your apartment/house, cell phone turned off/disconnected, utilities turned off, etc..?
It is important to pay your credit card bill in full every month.
What is yes? If you don't pay off your bill in full every month you will be charged interest and fees.
You are making dinner for your family tonight. You need to buy the following items to make pizza for everyone and have $35.00 to spend. Do you have enough?
Pre-made pizza crusts = $15.00
Pizza sauce = $4.50
Black olives = $1.75
Cheese = $10.00
Pepperoni = $7.00
Onion = $1.00
What is no? The total would be $39.25.
It is important to make a monthly budget. Explain why.
You need to budget your money so you have enough to pay your bills
-rent, food, utilities, transportation, etc...
If you don't have enough money to pay your bills every month, you can do this.
What is increase your take home pay or decrease what you are spending your money on (don't buy things you don't need)?
What is ask someone to help you budget better?
Your take home pay is $1,200 a month. You live in your parents basement and rent is $300 a month. You also have to pay your cell phone bill which is $100, you contribute to the food/groceries which is $250, and car insurance is $100. Do you have enough money to cover your bills?
What is yes? $450 left over.
List two options or ways you can get cash.
What is:
You can go to the bank and withdraw the money.
You can go to an ATM and use your debit card to pull money out.
You have saved money to buy a new computer and have $800 in your savings account. Over the weekend, your washing machine started acting up and needs a new belt. The repair service is going to cost you $300 to fix it. Should you go ahead and buy the computer you want or pay to get the washing machine fixed?
You should pay to get the washing machine fixed first. You can then see how much money is left and decide if you can buy the computer now or not. You might need to continue to save more money.