Budget Basics
What is a budget?
A plan for how you will spend and save your money.
What does it mean to save money?
To keep money to use later.
Groceries
Need
You have $20 and spend $5. How much is left?
$15.
Which is the better way to save: save some money before spending, or spend everything and hope something is left?
Save some money before spending.
Money that you receive from working is called what?
Income.
You have $50 and decide to save $10. How much can you spend?
$40.
A new video game when you already have games at home
Want
You have $50. You spend $15 on lunch. How much is left?
$35.
You want something that isn't in your budget. What could you do instead of buying it immediately?
Save for it.
Money that you spend is called what?
An expense.
Name one reason someone might save money.
Emergency, vacation, car, apartment, special purchase, etc.
Paying your electric bill
Need.
You have $100. You save $20 and spend $50. How much remains?
$30.
Two stores sell the same item. One costs $12 and the other costs $8. Which saves you more money?
The $8 item.
If you earn $100 and spend $70, how much money do you have left?
$30.
ou save $5 every week for 4 weeks. How much have you saved?
$20.
You have $20 left in your budget. You need toothpaste for $5 and want a $20 T-shirt. Which should you buy first?
The toothpaste.
You earn $80. Your phone bill is $30 and groceries cost $25. How much is left?
$25.
You have $30. You want to spend $25 eating out, but you need $15 for transportation tomorrow. Can you afford the meal?
No
Why is it helpful to make a budget before spending your money?
It helps you make sure you have enough money for your needs and savings.
You want headphones that cost $40. You already saved $15. How much more do you need?
$25.
Why should needs usually be included in your budget before wants?
Needs are necessary for everyday living and responsibilities.
You have $100. You save $25, spend $30 on groceries, and $15 on transportation. How much spending money remains?
$30.
You receive an unexpected $20. Name one financially responsible thing you could do with some or all of it.
Save it, add it to an emergency fund, or use it for an important expense.