Budgeting Strategies

Salary Based Budget

100

This is a 

Bonus Round ****ADD 100 POINTS****

200

NAME A BENEFIT OF ENVELOPE STUFFING

REDUCES CREDIT CARD/DEBIT CARD SPENDING

300

DESCRIBE A SCENARIO WHEN THIS METHOD IS USEFUL

BEGINNING TO SAVE; SAVING FOR A SPECIAL EVENT; SAVING WITHOUT A SAVINGS ACCOUNT

400

Identify one drawback of this method

If you lose the money, it is gone forever; You are not building credit; You may be tempted to use the cash for other reasons

500

WHAT WAS THE ORIGIN OF EVELOPE STUFFING

SAVING MONEY OUTSIDE OF BANKS DUE TO LACK OF TRUST IN INSTITUTIONS

50/30/20

100

How are the funds in this method distributed

50 for needs

30 for wants

20 for savings

200

How do you categorize expenses in this method?

Expenses are both needs and wants

300

Give an example of how a high school student can apply this method

saving for a big-ticket item; learning to save money

400

Give an advantage of this method

Planning out expenses and committing to savings helps with future goals

500

If you realize that your needs exceed 50%, how can you adjust this strategy?

60/30/10 Rule

Needs vs Wants

100

Give an example of a need

Physiological needs

200

As a high school student who frequently has homework assignments posted on Google Classroom, please name a high-priority need.

Computing device, laptop, desktop, internet

300

In the budgeting case study, Alana spent most of her income in this category.

Snacks

400

Needs and wants....

ADD 400 POINTS

500

This pyramid is used to explain the level of needs and wants

Maslow's Pyramid or Maslow's Hierarchy of Needs

Economics

100

What is the difference between gross pay and net pay?

Gross pay is the amount you earn before taxes, and net pay is the amount you receive after taxes.

200

When prioritizing needs and wants, what are the two categories to break down wants more accurately?

High priority and low priority wants

300

Give an example of a variable expense

Variable expenses change in price

400

In a zero based budget, what is the balance equal to in the end

zero

500

If you win $1000, and you follow the 50/30/20 budget, how much of your winnings are you allocating to savings

$200