1. Cost Benefit Analysis

2. What is the most important thing to remember when budgeting?

3. Put Needs before Wants!

4. Ideas to meet your needs (and as many wants as possible) Create a budget Coupons and discounts Comparison shop Cost-benefit analysis

5. Comparison of the pros and cons (costs and benefits) of action (remember: opportunity cost!)

6. Chocolate Bar: Godiva vs. Hersheys

8. Cost-Benefit Analysis: Meet Bob! Steady job – $2500 a month after taxes – $2000 a month usual spending $5,000 savings account (emergency fund)

9. Bob’s Problem 10 mile commute Irreparable car issue! Bob needs a new car!

10. Option 1: New Car with financing 2013 Subaru Impreza 2.0i ($19,812) $3,963 down payment sizeable loan of $328 per month – 60 Months @ 8.9% A.P.R. Faulkner Subaru

11. Option 2: Good Used Car Used 2006 Subaru Legacy 2.5i ($7,450) $1,490 down payment small loan of $123 per month – 60 months at 8.9%, $123 a month – 116,112 miles Faulkner Subaru

12. Option 3: Junker Car Used 2001 Toyota Corolla ($3,000) $3,000 cash NO loan! 85,000 miles Craigslist