Definitions

Budget

An outline of the money a person or family expects to receive and spend

Definitions

Short Term Budget

Plan for expenses that will occur within a brief period of time, usually a month

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Long Term Budget

Plan for major financial decisions that may not arise until years later

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Income

—All money coming in

—

—Examples:  Salary, allowance, gifts

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Expense: All money that is spent

Fixed Expense: Remains the same each

month

—

Examples:  rent, mortgage, car payment

Variable Expense: Changes from month to month

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Examples:  clothing, food, gas…

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Disposable Income

Another word for net pay

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Discretionary Income

Amount of income after the essentials (food, clothing, shelter) have been taken care of. 

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Debt

Money that is owed

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Savings

Putting money aside for furture use.

What are the advantages of a budget?

Are there any disadvantages?​

Benefits of budgeting

• Gives you control over your own money

• Helps you focus on your financial goals

• Makes it easier to ​stay aware of your savings and debts

• ​Helps you save for emergencies or unexpected costs

• It can help lead to a happy retirement

What information is needed to make a monthly budget?

What items in a budget might change from month to month?

1. Your utilities may change

2. You work on commission

3. You are self-employed

4. You have special events coming up

How to set up and maintain a budget

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Tips for maintaining a budget

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