Budget Basics
You earn $200 this week. What is the first thing you should do before spending it?
Create a budget/plan for the money.
You earn $150 and spend $90. How much is left?
$60
Your phone works perfectly, but a new model comes out. Need or want?
Want
You have $300 saved for a laptop, but your phone breaks and costs $150 to repair. What factors should you consider before using your savings?
Urgency, whether the phone is necessary, other repair options, and how it affects the laptop goal.
Your monthly income unexpectedly drops by $300. What should you cut first: rent, groceries, entertainment, or transportation to work?
Entertainment.
Your weekly income is $300. You plan to save $60. What percentage of your income are you saving?
20%
You have $500. Your bills are $175, food is $100, and transportation is $75. How much remains?
$150
You need shoes for work but want $200 designer sneakers. What could be a smarter choice?
Buy affordable shoes that meet the need.
You can buy a $1,000 laptop today or save $200/month for it. What are the advantages of waiting and saving?
Avoiding debt, interest, or draining savings.
Your electricity bill increases from $100 to $135. By what percentage did it increase?
35%.
You make $400 a month but your expenses total $450. What is the problem, and how could you fix it?
You have a $50 budget deficit; reduce expenses or increase income.
You earn $250. You save 20%, spend $75 on food, and $50 on transportation. How much is left?
$75
You have $80. You need a $40 bus pass but want a $70 hoodie. Can you afford both? What should you prioritize?
No; prioritize the bus pass.
You have $600 available. Option A: Spend $500 on a trip. Option B: Save $400 and spend $200. What is the opportunity cost if you choose the trip?
Giving up the opportunity to save $400 and having less money available for future needs.
You budget $250 for groceries but spend $75 in Week 1, $82 in Week 2, and $68 in Week 3. How much can you spend in Week 4 without going over budget?
$25
Your income is $600. You save $100, spend $250 on needs, and $200 on wants. How much money is unaccounted for?
$50
You earn $15/hour and work 20 hours. Before taxes, how much do you earn? If you save 20%, how much goes to savings?
$300 earned; $60 saved
You want concert tickets, but buying them means you can't reach your savings goal this month. What factors should you consider?
Priorities, savings goals, affordability, and whether you can reduce other wants.
You want a $1,200 laptop in 6 months and already have $300 saved. How much must you save each month?
$150 per month.
Your income drops from $2,500 to $2,000. Your needs cost $1,500, wants cost $600, and savings goal is $300. How much must you adjust your budget to avoid overspending?
$400
You earn $1,000 this month. Create a budget that includes needs, wants, and savings. Your total cannot exceed $1,000.
Answers vary; students must explain their choices and stay within $1,000.
You earn $800. You spend 50% on needs and 20% on wants. How much can you potentially save?
$240 (30%)
DEBATE: Can something be a "need" for one person but a "want" for another? Give an example.
Yes; answers vary with a reasonable explanation.
You have $2,000 saved. Your car needs a $900 repair, you owe a $500 bill, and you want to keep at least $1,000 in emergency savings. Can you pay for everything using your savings and still meet your emergency goal?
No. You would have $600 left, which is $400 below your goal.
THE PAY RAISE: Your monthly income increases from $2,500 to $3,000, but your spending increases from $2,000 to $2,700. Are you actually saving more money than before?
No. Before: $500 remaining. After: $300 remaining. Despite earning $500 more, you have $200 less remaining.