Benefits of Budgeting
What is a budget?
A budget is a monthly plan for your expenses.
What are the four parts of a budget?
Income, giving, saving, spending.
What is a zero-based Budget?
Tracking your expenses helps you stick to your budget and makes it to where you can see and make adjustments to your budget.
What are the two money personalities?
Spenders and Savers
Can budgeting help with debt?
YES!
What are the four types of expenses?
Fixed expense, variable expense, intermittent expense, and discretionary expenses.
What is net income?
It is what a person earns after payroll taxes, also known as take-home pay.
What is a cash-flow statement?
A record that records your income and spending over a period of time.
What is irregular income?
income that comes in at different amounts or at different times.
Freedom. Having a budget can help you spend your money freely without worrying about bills, debt, and etc.
You can break your budget into__
Categories.
What is gross income?
It is the money you get paid without any tax or other payroll reductions.
How do you track your spending?
Every time you buy something write down the item and how much it costed.
Can you still budget in high school?
Yes! Even without a job you still earn money from things like birthdays and chores.
How does budgeting benefit financial goals?
Budgeting helps you achieve your financial goals!
Before creating a budget you need to...
Figure out your net-worth.
Is a zero-based budget the most effective budget method?
What happens if you go over your budget?
Just adjust it a little bit so that you can make up for the money you spent over your limit.
What is commission?
Your earnings based on the amount of sales made.
Ex: If you work at a car dealership almost all the income depends on the amount of cars you sell that day, week, and or month.
What percentage of students that take personal finance start a monthly budget?
80% of students.
What percentage of people actually budget each month?
35%
Make sure to have a ___ category
Miscellaneous.
The best way to track your expenses is the....
Envelope method.
Budgeting is...
A habit that you will need to work on. It will take time for the effects of your budget to start to show.