Making a Budget 7 th & 9 th 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 $ 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!!