Budgets
What is a budget?
A budget is a plan for your money.
What is a cheque?
A cheque is a piece of paper that tells the bank to take money from your bank account and give it to someone else.
Name one type of bank account
- Chequing
- Saving
Name one type of expense we talked about in week 1
- Fixed Expense
- Variable Expense
_ Unexpected Expense
List 3 NEEDS
- Clothes
- Food
- Rent
- Medicine
What is one thing we must know before creating a budget?
Either
a) how much we spend
b) how much we earn
c) how much money we have leftover
When might you use a cheque?
•Paying rent
•Paying a bill
•Giving money to a person or company
Where is the money in your bank account held?
In a bank
What is a fixed expense?
An expense that you must pay often. The price usually stays the same each time.
List 3 WANTS
- Candy
- Video Games
- New sneakers
- Toys
True or false: you have to have lots of money to make a budget
False! Anyone can make a budget, no matter how much money they have.
What is one segment of a cheque that must be filled in?
- Name
- Dollar Amount
- Memo
- Signature
- Date
What is one way you can pay using a chequing account?
- Debit Card
- Cheque
Give one example of a variable expense
- New shoes/clothes
- Groceries
- Treats
- Gas
Why is it important to be financially literate?
Because being financially literate helps us be independent
If you are unsure of how to make a budget, who can help?
- Parents/Guardians
- A trusted caregiver
- Bank employee
What information goes on the "memo" section of a cheque?
Which type of bank account is used for daily spending?
Chequing Account
Explain what an unexpected expense is
Something you must pay for that you did not expect.
Nice!
In your own words, explain why a budget is a helpful tool.
- Helps us understand our finances
- Shows us how much extra money we have
- Tells us what we can and cannot afford
Think of a cheque as a written ___________________
What type of bank account is NOT used for daily spending? (Hint: This is where your extra money can be stored for safe keeping)
Savings account
How can we prepare for unexpected expenses?
Save money in a savings account
Share one thing you learned in this lesson
Nice!