Budget What does it include?

Income Salary Wage Fixed payment paid on weekly, bi-weekly, or monthly basis, that does not vary depending on how little or how much you work Income earned hourly; pay depends on how much or how little you work

Taxes Sales Taxes – tax placed on items you buy Federal, State, Local Sales vs. Income Taxes Sales Taxes – tax placed on items you buy Income taxes – taxes taken out of your paycheck

Types of Expenses Variable Expenses Fixed Expenses How much you spend is dependent on your decisions. The price each month can go up or down. Groceries Gas Occur regularly and the amount does not change much from month to month Loans (sudent/car) Rent or Mortgage Cell Phone

Discretionary Expenses Anything extra that isn’t needed: Going out with friends Restaurant/Movies Opportunity Cost When you make a decision on an item to buy, the opportunity cost is something you COULD HAVE bought with the money you spent.

Savings Extra Money put aside for: Emergency Future college Future big item expense

Charitable Giving Donating to charity or religious organization/church