What is earned income?
money from working a job
What is 3 ways people can earn income?
•Job
•Chores or babysitting
• Yard work
• Tutoring
• Starting a small business (crafts, reselling)
• Gifts/allowances
What is an example of unexpected expenses?
You save $5 per week. How much after 6 weeks?
$30
What is a need?
Money a person earns or receives.
What is Gross pay?
The total money earned before deductions.
What do you want to avoid when managing money?
Avoid impulse purchases
Expenses should be ___________ than your income
LESS!
You earn $80. You save $20. How much can you spend?
$60
What is an example of a common expense?
•Rent/mortgage
•Utilities (electricity, wifi, water, etc.)
•Phone bill
•Car payments and gas
•Entertainment
•Shopping
What is net pay?
The amount you take home after deductions.
What is a budget?
A budget is a plan for how you want to use your money.
What is variable/flexible expenses?
Price can be different each month… you have some control
You want something that costs $90. You save $15 each week. How many weeks will it take you to get to $90 saved?
6 weeks
Spending money on needs first helps you avoid this problem later.
Getting into financial trouble/ debt
Fixed expenses
Doesn’t change, the same each month
What is 2 qualities of a good budget?
•Expenses should be less than income!
•Include savings
•Plans for unexpected expenses.
This type of savings is used for emergencies or unexpected expenses.
Just in case fund
You earn $25 per week. How much do you earn in 2 months (8 weeks)
$200
Choosing not to buy something now so you can afford something better later is an example of what type of goal?
Long term goal
What are Discretionary expenses
Money you choose to spend on “wants”
You earn $60. Your budget includes $25 for needs, $20 for wants, and the rest for savings.
How much money are you saving?
$15
You save $10 each week. After 3 weeks, you spend $15 from your savings.
How much money do you still have saved?
$15
You earn $30 per week. You save $8 each week and spend $12 each week. After 4 weeks, how much money do you have left over?
$40
You decide to save $5 each week instead of spending it all. This shows you are planning for this.
Future goals/ long term goals