Budget Basics
What is a budget?
A plan for how to spend and save money.
What does it mean to save money?
Putting money aside for later.
Is food a need or a want?
Need.
What should you do before buying something expensive?
Compare prices and think before buying.
What is direct deposit?
Money sent directly into your bank account
What should you do if you spend more than you earn?
Cut spending or earn more money.
Name one place to keep your savings.
Savings account, bank, or credit union.
Is a new video game usually a need or a want?
Want.
What is an impulse purchase?
Buying something without planning.
Why is it important to keep some money for emergencies?
To pay for unexpected expenses.
Which should come first in a budget: spending or saving?
Saving.
If you save $10 each week for 5 weeks, how much will you have?
$50.
Name two examples of needs
Food, housing, water, transportation, clothing.
Why is comparing prices a smart idea?
It helps you get the best value and save money.
What is a paycheck?
Money earned from working.
True or False: A budget helps you reach your financial goals.
True.
What is a savings goal?
A specific amount of money you plan to save for something.
Is buying designer shoes a need or a want?
Want
What happens if you spend all your money as soon as you get it?
You won't have money left for savings or emergencies.
Name one way a teenager can earn money
Babysitting, mowing lawns, tutoring, pet sitting, part-time job, etc.
Your monthly income is $200. You save $40 and spend $120. How much is left?
$40.
Why is it smart to "pay yourself first"?
Save money before spending it
You have $50. You want sneakers for $45 but also need school supplies for $20. What is the smarter choice?
Buy the school supplies first because they are a need.
You have $30. You want fast food for $15 and a movie ticket for $15, but you're saving for a $100 bike. What should you do?
Spend less or skip one purchase to keep saving toward your goal.
You earn $150 from a part-time job. You plan to save 30%, spend 50%, and donate 20%. How much goes into each category?
Save: $45, Spend: $75, Donate: $30.