Budgeting Basics
Give one example of a "need" and one example of a "want"
Need: food, clothing, paying bills, water, rent
Want: video game, takeout food, fancy clothes, iphone
A spending plan to help manage your money
Budget
Give an example of utilities you pay for when you rent or own a house
Ex. electricity, water, internet, gas
Name one easy strategy to reduce grocery bills when shopping
Use coupons, buy store brands, shop sales
Name 3 types of transportation besides car
Bus, trolley, train, ferry, subway, bike
What is the name of a bank account you keep your money in and do not spend from?
A savings account
A set restriction on the amount of money you can spend
Spending limit
Renting typically requires this upfront payment that protects the landlord against damage or unpaid rent
Security Deposit
Explain how meal planning can lower both grocery and dining-out expenses
Plan meals to buy only needed ingredients, cook in batches to reduce dining out
Buying gas, insurance, and maintenance are examples of these types of transportation costs (fixed or variable?).
Variable costs
This is the money you earn before taxes and deductions are taken out.
Gross Pay
Putting money into a savings account
Deposit
Name two essential items a person should check or ask about before signing a lease.
Examples: length of lease and total monthly costs; pet policies; who pays for repairs
Given a weekly grocery budget of $75, calculate the monthly grocery budget (assume 4 weeks).
$300
What is the financial advantage of using public transportation instead of owning a car?
Lowers monthly costs
Give me an example of a short term saving goal.
Answers may vary. Moderator use discretion
Taking money out of a savings account
Withdrawal
Provide one financial indicator that suggests someone may be ready to buy a home.
Example: steady income, stable job, enough for down payment and closing costs
How can you reduce dining-out costs while still enjoying occasional meals out
Plan weekly limits, choose cheaper restaurants, split meals or use coupons
Describe one way geographic location can affect transportation choices and costs.
Rural areas often require car ownership; cities often offer public transit reducing need for a car.
Type of savings goal necessary to save up for a car (long-term or short-term)
Long-term savings goal
The part of your pay you actually take home after deductions; it’s what you can spend
Net pay
List three items that should be included in a roommate agreement
Rent split method, utilities division, damage responsibility, move-out procedures.
Define inflation in one sentence and describe how it affects grocery budgeting
Inflation: general rise in prices over time; requires grocery budgets to increase
Jared is deciding between buying a monthly bus pass ($60) or spending as daily fee ($4). Jared has to ride the bus 5x a week. What is the cheaper option?
The monthly bus pass