SMART Goals
What does the S in SMART stand for?
Answer: Specific
Income is money coming _____.
Answer: In
Your apartment rent is $900 every month. What type of expense is it?
Answer: Fixed
Monthly income is $2,000 and expenses are $1,800. How much is left?
Answer: $200
Which would generally be easier to reduce quickly: your rent or entertainment spending?
Answer: Entertainment spending
What does the M in SMART stand for?
Answer: Measurable
What is the difference between gross income and net income?
Answer: Gross is before deductions; net is after deductions.
Your electric bill changes each month. What type of expense is it?
Answer: Variable
You earn $14/hour for 20 hours. How much do you earn?
Answer: $280
You have $100. You need $60 for gas and want to spend $50 eating out. Can you afford both?
Answer: No. You would need $110, so you're $10 short.
What does the T in SMART stand for?
Answer: Time-Bound
You earn $15/hour and work 24 hours. What is your gross income?
Answer: $360
Going to the movies with friends is generally what type of expense?
Answer: Discretionary
You earn $500 per week. Using the quick ×4 estimate, what is your estimated monthly income?
Answer: $2,000
Your electricity budget was $150, but the bill is actually $190. How much extra do you need?
Answer: $40
What is missing from this goal?
“I will save $500 for a new phone.”
Answer: A deadline/time frame and a plan for how the money will be saved.
You earn $16.50/hour and work 30 hours. What are your weekly gross earnings?
Answer: $495
Groceries are usually a need, but why are they considered a variable expense?
Answer: Because the amount spent can change from month to month.
Monthly income is $2,800 and expenses total $3,050. How far over budget are you?
Answer: $250
Job A pays $12/hour for 30 hours. Job B pays $16/hour for 20 hours. Which gives you more weekly gross income?
Answer: Job A — $360 vs. $320
Turn this into a SMART goal:
“I want to save money for a car.”
Answer: Answers vary. Example: I will save $2,000 for a car down payment within 10 months by saving $200 each month.
A job pays a salary of $54,000 per year. What is the average monthly gross income?
Answer: $4,500
A streaming service costs exactly $20 each month. Could it be described as both fixed and discretionary? Explain.
Answer: Yes. The monthly amount is fixed, but the service is generally optional/discretionary.
You earn $17.25/hour and work 32 hours. What are your weekly gross earnings?
Answer: $552
You bring home $2,500. Your expenses are $2,650. Name one reasonable way to fix the problem and explain why.
Answer: Answers vary. Students should recognize the $150 deficit and identify a realistic reduction, usually starting with discretionary spending.