1. Personal Budget Vocabulary

2. Personal Budget Estimate of costs, income, and resources over a certain period of time. Step 1: Identify how much money you will have Step 2: Evaluate all possible expenses Step 3: Plan what to and not to spend money on Step 4: Adjust your next budget from your last one

3. Goods Objects that can be bought or sold EXAMPLES: Anything in a grocery store My Examples: Identify 3 things you want to buy at the grocery store

4. Services Activities performed by people to satisfy wants. Example: Anything you pay someone to do My Examples: What are 3 services you pay for?

5. Shortage When there is a demand for an item, but not enough of that item. Example 1: The teacher has a shortage of pencils, as all the students forgot theirs today. Example 2: In the 1970s, the U.S had a shortage of gas, causing prices to rise and long lines at the gas pumps

6. Opportunity Cost The second-best alternative that must be given up when resources are used for one purpose instead of another Example: I sold my car to pay off my credit card. My opportunity cost is giving up my car. My Examples: Think of the last time you wanted to do something, but gave it up for doing something more important. The item you gave up is the opportunity cost.

7. Fixed Expenses Costs in a budget that do not change Examples: Monthly car payments, mortgages, money for food. My Examples : What are two more bills you and your parents have to pay for each month?

8. Variable Expenses Costs in a budget that may change during the budget Example: Vacations, entertainment, medical bills, emergencies. My Examples : Name two expenses that can vary from month to month.

9. Credit The opportunity to borrow money or to receive goods or services in return for a promise to pay later. Examples: Credit cards My Examples : What are some examples of credit cards you have seen?

10. Consumer Credit a line of credit extended for personal or household use Example: The amount of credit your family has available to them.

11. Personal Investments Putting money into something with the intentions of making more money from it later on. Examples: College degree, stock, real estate My Examples : What are some examples of stocks, real estate, and college degrees?