2. 10/14 Aim : Why is budgeting important? Do Now : Necessities & Luxuries Chart

3. Budgeting

4. What is a budget??? - a budget is a plan for spending and saving Why??? - to make sure your income matches your expenses with enough left for savings or investment!!

5. OK, so ….. what do I do….?? first, you need to calculate your NET income -- the amount of money you TAKE HOME!!

6. …Then what?? then, you need to calculate your expenses…. expenditure – the amount of money you spent Fixed – the same each month Variable - changes

7. …track your spending & separate “needs” from “wants”… necessity – an item that a person must have…such as food, clothing, shelter luxury – an item that offers physical comfort or enjoyment, but is not necessary for life and health

9. …now, do the math…… …if the numbers don’t work out…….. ……you’ve got some work to do!!!

10. …by growing your income …. –or adjusting your spending…..

11. ….You’ve got to have a PLAN !!!!

12. Figure out a budget & stick to it!!! …yikes!!!! -make sure you figure in savings and investing!!!

13. ..for those unexpected expenses…….

14. …and future plans!!!

15. ….so…..how do I save money? Be a smart shopper…… Look for sales & compare prices Buy generic or store brands Use coupons Use classified ads! Helps consumers make decisions: Compare goods & services wanted to buy Use as a guideline for pricing & advertising to sell items