Income
What is income?
Money you earn or receive.
What is an expense?
Money you spend.
What is savings?
Money you keep for future use.
What is a budget?
A plan for your money
What happens if you spend more than you earn?
You go into debt or run out of money.
Name 2 examples of income for teens.
Job, allowance, gifts, babysitting.
Give 2 examples of fixed expenses.
Phone bill, rent, subscriptions.
Why should teens save money?
For goals and emergencies.
What are the 3 main parts of a budget
Income, Expenses, Savings
What is impulse buying?
Buying something without planning.
What type of income is “earning money from a part-time job”?
Earned income.
What is the difference between fixed and variable expenses?
Fixed stays the same; variable changes.
What is an emergency fund?
Money set aside for unexpected expenses.
What does the 50/30/20 rule mean?
50% needs, 30% wants, 20% savings.
Why is having $0 savings risky?
You have no backup for emergencies.
Why is income important in budgeting?
It determines how much money you can spend and save.
Is food a fixed or variable expense? Why?
Variable, because it changes each week.
If you save $10 per week, how much do you save in 1 month (4 weeks)?
$40
Why is tracking spending important?
It helps you avoid overspending.
A budget has $200 income and $250 spending. What is the problem?
Overspending.
A teen earns $50/week. How much do they earn in 4 weeks?
$200
: A student spends $20 on snacks, $30 on food, and $10 on transport. What is their total expense?
$60.
Why is paying yourself first a good saving strategy?
It ensures you save before spending.
If your income is $100 and you save 20%, how much do you save?
$20.
Fix this budget: $200 income, $180 entertainment, $0 savings.
Reduce entertainment and add savings (balanced budget needed).