Section 2: What are the components of a quality budget? Unit 3: Budgeting

I Can: Identify the 3 types of expenses: fixed, variable and periodic Explain what is meant by “pay yourself first” Describe purchasing power

Pay yourself first This is the CARDINAL RULE of finance. It means that you should automatically put money into a savings account for yourself. The general rule is 10% of your pay goes to you…

Fixed, variable, periodic expenses Fixed expenses: are expenses that do not change House payment, car payment, utilities bills, etc… Variable expenses: are expenses that you regularly have, but the amount changes groceries, entertainment, clothing Periodic expenses: appear irregularly and vary in cost Car repair, health care, etc

Purchasing Power This is your ability to buy goods and services If you have a balanced budget and set goals that work within your standard of living, you should have great power to purchase what you want The wealthier your are, the greater your purchasing power. Bill Gates has greater purchasing power than Jen Klingeman or Doc Carranza

Can I? Identify the 3 types of expenses: fixed, variable and periodic Explain what is meant by “pay yourself first” Describe purchasing power I can prove this by completing: Fixed, variable or periodic Worksheet