1. Budget Aspects Personal Finance and Budgeting

2. Needs Versus Wants Needs- Monthly expenses associated with goods and services that keep you life stable. Needs can be divided into two types: fixed expenses and variable expenses Fixed Expense- Expenses that are roughly the same every month Examples- Rent, house payment, car payment, insurance, child care, etc... Variable Expense- Expenses that fluctuate throughout the year Examples- Utility bills, groceries, gasoline, etc….

3. Wants (Discretionary Funds) Discretionary Fund- When you spend money on something that you want rather than something that is essential for day to day living. Examples- Snack at a convenience store, movie tickets, vacation etc….

4. Budget Needs Fixed Expense Variable Expense Wants Discretionary Funds

5. Label each item- (DF) Discretionary fund, (VE) Variable expense, (FE) Fixed expense Magazine Concert Ticket School Books Car Insurance Heating Bill I Tunes Frozen Pizza from the grocery store House payment Car oil change Student loan payment ACL surgery New car windshield Disney World Vacation