Making a Budget

Report
Making a Budget
7th & 9th Grade FACS
How much money do you spend
each week?
Some Money Facts
• The average person spends money three
times a day.
Some Money Facts
• A movie with popcorn and a soft drink can
easily cost $20.00.
Some Money Facts
• Just one soft drink a day for $0.99 adds up
to $361.35 in a year.
Some Money Facts
• How much is the average amount a
teenager spends in one week?
• $104/ week
• Teenage Research Unlimited, 2001
Budget Definitions
• Consumer – Anyone who buys items or
pays someone to do a service.
Budget Definitions
• Budget – A spending plan or a guide to
help you direct where your money goes.
Budget Definitions
• Income – Money you receive.
Budget Definitions
• Fixed Expenses – Repeated set costs.
– Insurance
– Car payment
– House payment
• Flexible Expenses – Repeated variable
costs.
– Groceries
– Clothing
– Entertainment
Budget Definitions
• Savings – Money set aside for future use.
• Credit – An agreement that allows you to
buy an item now, and pay for it later.
• Finance Charge – A fee for use of credit.
Budget Definitions
• Impulse Buying – Buying items you had
not planned to buy.
Budget Definitions
• Gross Monthly Income – Total income
before taxes or expenses. Your salary.
• Example: $1,500 before taxes
Budget Definitions
• Net Monthly Income – Income after
deductions. What you take home. What
you actually see on your paycheck.
• Example - $1,500 GMI becomes $1,100
NMI
Budget Definitions
• Payroll Deductions – Money that comes
out of every paycheck for medical
insurance, dues (union), retirement plans,
etc.
Budget Definitions
• Monthly Expenses – What you need to
pay out each month in order to live your
lifestyle.
• Examples – rent, cable, phone, food,
clothing, car payments, gasoline, car
insurance, entertainment, etc.
Budget Definitions
• Balance – What is left after pay all of your
expenses.
• If nothing is left or you are in the “red”, you
need to make cut-backs!!! Make a
budget!!

similar documents