10/14 aim : why is budgeting important? do now : necessities & luxuries chart

10/14 Aim : Why is budgeting

important?

Do Now : Necessities & Luxuries Chart

Budgeting

What is a budget???

- a budget is a plan for spending and saving

Why???

- to make sure your income matches your expenses with enough left for savings or investment!!

OK, so ….. what do I do….??• first, you need to calculate your NET

income-- the amount of money you TAKE

HOME!!

…Then what??

• then, you need to calculate your expenses….

expenditure – the amount of

money you spent

Fixed – the same each month

Variable - changes

…track your spending & separate “needs” from “wants”…

• necessity – an item that a person must have…such as food, clothing, shelter

• luxury – an item that offers physical comfort or enjoyment, but is not necessary for life and health

…now, do the math……

• …if the numbers don’t work out……..

• ……you’ve got some work to do!!!

…by growing your income….

– or adjusting your spending…..

….You’ve got to have a PLAN !!!!

Figure out a budget & stick to it!!!

…yikes!!!!

-make sure you figure in savings and investing!!!

..for those unexpected expenses…….

…and future plans!!!

….so…..how do I save money?Be a smart shopper……• Look for sales & compare prices• Buy generic or store brands• Use coupons

Use classified ads!• Helps consumers make decisions:• Compare goods & services wanted to buy• Use as a guideline for pricing &

advertising to sell items