scenarios
Lara wants to start budgeting! What are some things she should keep in mind when setting up a budget? (Needs, wants, etc.)
Income, specific needs, savings towards goals, estimated expenditures
The activity of planning out expenses and savings.
Budgeting
things adults need to budget for
Healthcare, food, gas
Variable expenses _____ from month-to-month, year-to-year, etc.
change
Toothpaste
need
Megana earns $600 from her part-time job and spends $500 a month on takeout. Why can this be bad in the long run?
Hurts health, financial health, and you only have $100 left to spend on other needs/emergencies
Money that is earned by an individual or company.
Income
things that teens may start to save/budget for
College, car, hangouts
You spent over your limits for wants this month, so you should _____ your budget for next month.
readjust
Transportation
need
At a dinner party with your friends, you eat $80 worth of food but only set aside $60 for food, what should you do next time?
A. Ignore that you didn't pay your $20 worth
B. Don’t attend a dinner party again
C. Put aside an ample amount of money and make sure you can cover the expense beforehand.
D. Ask your friends for $20 but don’t give it back
C
Popular method of budgeting to portion out a healthy ratio of needs, wants, and savings.
50-30-20 Rule
ways teens may make money
Chores, part-time jobs, sell old items
Someone who doesn’t work at all but has money that is continuously generated utilizes the benefits of ___.
SSI
Coffee
want
Angela sets her monthly budget to $500.
$200 eating out
$80 entertainment
$20 transportation
$75 shopping
How much does she have left to spend on other things?
$125
Money earned in a manner that does not require too much effort
Unearned Income
things to take into account when budgeting outside of needs and wants
emergency money, retirement fund, college fund
A person is living ___-to-_____ when their paycheck is used to cover their necessary expenses with no money left over.
paycheck-to-paycheck
Apple
want - other food options
Connor wants to start his own emergency fund! Approximately how many months of basic living expenses should he cover in this fund?
At least 3-6 months worth of money
Balance
types of loans
Student loans, credit cards, mortgages, auto (car) loans
Experts recommend that you keep enough money in your emergency fund to cover at least __ to __ months' worth of living expenses.
3, 6
Cell phone service
need/want