Discuss these questions with your table partner: (be ready to discuss these questions) 1. Why is it important to learn about the difference between needs and wants? 2. Are needs and wants the same all over the world? 3. Will needs and wants change with age? 4. What are ways you can get more of your wants? **Pick up a packet off the back table. Put your name on the front**

In order to buy your wants and needs you need……... Money

Income Budget Need Want Expenditures

Today we will: learn about what a budget is So we can: begin to make financial decisions

Balancing your spending and your income

What do I budget for at age: 14 years old 25 years old 50 years old

Reminder: Assignment for Tuesday January 10th

FICA- Federal Insurance Contribution Act SDI- State Disability Insurance

Definitions Gross Annual Income: How much you make each year BEFORE taxes Gross Monthly Income: How much you make each month BEFORE taxes Net Monthly Income: How much you make each MONTH after taxes Get it? Net. haha!

Definitions Federal Income Tax Social Security Medicare A portion of one’s personal income paid to the government **The more you make, the more you pay** Income tax pays for: Social Security, Medicare, Retirement programs, Military, veterans, Interest payments on national debt, Social programs- medicaid, food stamps, unemployment, Law enforcement- prisons, FBI, CIA Social Security - A federal insurance program that provides benefits to retired persons, the disabled, and spouses of deceased workers. - Provides economic security for Americans unable to work. - Comes from workers and employers Medicare The federal health insurance program for people who are 65 or older or certain younger people with disabilities.

FICA- Federal Insurance Contribution Act SDI- State Disability Insurance