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