1. Evaluate the costs and benefits of budgeting

2. I. What is a Budget? A. How to spend income v. expenditures (expenses)
1. Income: Amount of money that a person or business makes
a. Gross Income: Total amount of money made before deductions
b. Net Income: The amount of money left over after expenditures
2. Expenditures (expenses): Total amount a person or business spends

3. B. Types of Expenditures
1. Deductions: expenditures before paycheck is received
a. Pre-Tax Deductions
(1.) Retirement Payments
(2.) Life insurance
(3.) Social Security
(4.) Medicare

4. 2. Taxes Federal Income Tax – paid to the US Gov’t
State Income Tax – paid to the State Gov’t

5. Average Income Taxes Around the World

7. C. Types of Bills 1. Mortgage - owning home / Rent – not owning a home
What is a foreclosure?
2. Car Payment
a. Gas Payments
3. Insurance: company “backing” you up
a. Car Insurance: required
b. Home/Renters Insurance : recommended

8. 5. Saving: setting $ aside for a later time 6. General Expenses:
4. Phone Bill
5. Saving: setting $ aside for a later time
6. General Expenses:
a. Groceries
b. Household Items
c. Entertainment