www.ted.com/talks/joachim_de_posada_says _don_t_eat_the_marshmallow_yet.html www.ted.com/talks/joachim_de_posada_says _don_t_eat_the_marshmallow_yet.html Instant Gratification: unwillingness to give up something now in return for something later Delayed Gratification: willingness to give up something now in return for something later
Use budgets to itemize and manage income, expenses, and savings Important to spend less than you earn With a partner: When was a time you wanted to buy something but didn’t have enough money to pay for it?
With a partner: What are ways you could save money for something you wanted to buy? With a partner: What are examples of something you or your family need to buy versus something you’d like to have? (Needs and Wants)
What are some reasons you might want to have a written plan for how you are going to spend your money?
How you spend your money and how much do you spend in a given period of time Helps you plan the savings you’ll need for certain expenses Helps you make decisions about your money both today and over time
How much money you have coming in during a period of time (income) How much money you have going out (expenses) How you can adjust spending habits to save and get the most value for your money
1. Fixed- expenses occur regularly and don’t change from month to month (rent, car payments) 2. Flexible- regular basis- you have some control over how much you spend (food and gasoline) 3. Discretionary- money you choose to spend (going to movies, having pizza with friends, money you save)
What are some things you would list on your budget? What do you spend money on now? What are some things you never have enough money for? How could a budget help? What are some ways you could save money when you go shopping?
Covers basic expenses that occur on a routine basis Has money available for unexpected expenses Includes savings for the future
Keep your budget in mind when you shop! Save money to make large purchases Compare prices for similar items at different stores