1. Mr. Park ERHS Mr. Saliani, Principal
Budgeting
Mr. Park
ERHS
Mr. Saliani, Principal

2. Student Loan Article
What are your major concerns when applying to college?
What tools can you use to give you a clearer picture of what paying for college will look like?

3. Direct Loan Basic Information

4. What is a budget?

5. Vocabulary
Budget: A financial plan used to forecast and track income and expenses
Surplus/Deficit: ____________________________________________
Expense: Use of finances to fulfill a one-time or ongoing obligation; can be fixed or variable
Fixed Expense: A regular, predictable expense such as a mortgage payment or rent.
Variable Expense: An expense or expense category that is not fixed and can’t be precisely predicted; budget planning is something used to limit or constrain variable expense.

6. + -
Fixed Expenses
Variable

7. Sample Monthly Budget

8. Budget Template

9. Budget Answer Key

10. Why Create a Budget?

11. Balanced Budget
—A plan that shows that the money coming in (income) is equal to the amount going out (expenses)

12. Strategies to reduce expenses

13. Budgets
Strategies to reduce your expenses and move towards a surplus….
—Save money (coupons, less dining out, avoid spending on luxuries)
—Use comparison shopping….
—Spend less than you earn and then you can get to a budget surplus

14. Gross Pay

15. Disposable Income
—The amount of income remaining after taxes that is available for spending (Also referred to as Net Pay)
—Also defined as the amount of money left after deductions have been taken from your gross pay

16. Paycheck Deductions
—Mandatory payroll deductions: Federal and State income tax, Social Security and Medicare taxes
—Optional payroll deductions: Money going into a 401k savings plan, money going directly into paying life insurance premium

17. Emergency Fund
—Always have an emergency fund of at least six to eight months of income at your disposal
—Why have one?