1. Budget
What does it include?

2. 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

3. 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

4. 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

5. 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.

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

7. Charitable Giving
Donating to charity or religious organization/church