Budgeting Basics
What is the first step you should take when creating a budget?
Identify all your sources of income.
Name a simple way to reduce monthly expenses that can help increase the amount of money available for savings
cutting out unnecessary expenses.
Explain Needs vs. Wants
Needs are essential expenses necessary for basic survival and functioning
Wants are non-essential items that enhance the quality of life
Why is it a good idea to set aside some money for savings every time you receive money?
So you have money saved up for things you might need later or in case of an emergency.
What is the "pay yourself first" strategy?
This financial strategy involves setting aside a small portion of income regularly, even if it's just $5 a week.
Name +3 essential expenses
housing, food, and healthcare, hygiene products
Name +3 examples of fixed expenses
Phone bill, rent, health insurance, memberships (Netflix)
Name a common percentage of your income recommended to save each month.
10%
Name +3 Non-essential expenses
Eating out, Entertainment, subscriptions