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Dollars & Sense!
 Students will be able to define the following key
terms: budget, expenses, income, wants, needs,
fixed income, unexpecte...
This lesson will include real world reading, math, and
technology skills used in monthly financial planning.
Lesson Focus:...
Budget
Expenses
Fixed Income
Income
Needs
Wants
Debt
Unexpected Expenses(Curveballs)
A Budget is a plan that a family or person creates to
spend and save money.
A plan that sets a sum of money aside that is
...
Cost or charge, cause or occasion of spending
(Dictionary.com, 2012).
Expenses are the bills and other things that you
spe...
 A payment received for goods or services or other
sources such as rent or investments (
Dictionary.com, 2012).
Your inc...
 A uniform or set rate of income per amount of time
(Dictionary.com, 2012).
 Fixed income is an when a person has a set ...
 Unexpected expenses are considered curveballs
because they are expenses you do not expect to
arise.
 For example, your ...
Of necessity, necessarily, a must (Dictionary.com,
2012).
Needs are necessities, they are the expenses you
need to survive...
To wish, crave, demand, or desire. An impulse (
Dictionary.com, 2012).
Wants are things that you do not need to
survive:
F...
 What is debt?
 Something that is owned or one bound to
pay to another (Dictionary.com, 2012).
 Debt is when a person o...
There are 7 steps in creating a monthly budget
1. List all of your monthly needs
2. List of some of your wants
3. Write do...
1. Why do you think a budget is important in
healthy family/personal financial planning?
2. What happens if we spend more ...
1. What is a budget?
2. Why do we need a budget?
3. What is an expense?
4. What is a need?
5. What is a want?
6. How do we...
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Creating a budget

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Creating a budget

  1. 1. Dollars & Sense!
  2. 2.  Students will be able to define the following key terms: budget, expenses, income, wants, needs, fixed income, unexpected expense, and debt  Students will be able to plan a working budget  Receive knowledge to develop a budget to use in their family/personal life  Create a budget using spreadsheets  Distinguish between wants and needs  Categorize wants into a list  Categorize needs into a list  Because of this exercise, students will understand their income, expenses, and plan a realistic budget.
  3. 3. This lesson will include real world reading, math, and technology skills used in monthly financial planning. Lesson Focus: Practical understanding of budgeting and differentiate between the “I want it” and “I need it” columns. Lesson Goal: To spend less than what we earn, make better financial decisions, and deposit any money left into a savings account.
  4. 4. Budget Expenses Fixed Income Income Needs Wants Debt Unexpected Expenses(Curveballs)
  5. 5. A Budget is a plan that a family or person creates to spend and save money. A plan that sets a sum of money aside that is needed for a given purpose (Dictionary.com, 2012). It helps a person learn how much he or she is spending and how much he or she is saving.(Bernstein, 36).
  6. 6. Cost or charge, cause or occasion of spending (Dictionary.com, 2012). Expenses are the bills and other things that you spend money on. For example, the electric bill is an expense In addition, Expenses can include going out to eat
  7. 7.  A payment received for goods or services or other sources such as rent or investments ( Dictionary.com, 2012). Your income is the money you earn or receive each week, bi-weekly, monthly. It includes interest from a checking or savings account Including interest from a second job, hobbies( items sold from what you made as a hobby, investments, and governmental supplement income
  8. 8.  A uniform or set rate of income per amount of time (Dictionary.com, 2012).  Fixed income is an when a person has a set amount that is earned or received weekly, monthly, bi-weekly or monthly.  For example, a person who receives social security is on a fixed income
  9. 9.  Unexpected expenses are considered curveballs because they are expenses you do not expect to arise.  For example, your daughter is playing basketball and she injuries her knee during a game.  The doctor bill and medication is an unexpected expense  It is important to save money ( a rainy day fund) for unexpected expenses
  10. 10. Of necessity, necessarily, a must (Dictionary.com, 2012). Needs are necessities, they are the expenses you need to survive: For example…Clothing, Food, & Laundry Utilities ( gas, electric, water, food, & a telephone) Insurance: Car, home, renter’s insurance Transportation A home
  11. 11. To wish, crave, demand, or desire. An impulse ( Dictionary.com, 2012). Wants are things that you do not need to survive: For example, movie rentals Movie tickets Hobby supplies Going out to eat at a restaurant Cable TV or Satellite TV
  12. 12.  What is debt?  Something that is owned or one bound to pay to another (Dictionary.com, 2012).  Debt is when a person owes money  For example a mortgage, car payment, or credit cards
  13. 13. There are 7 steps in creating a monthly budget 1. List all of your monthly needs 2. List of some of your wants 3. Write down your monthly income or fixed income 4. Add your total income if you have more than 1 income. 5. Add your needs and your wants together to view the Total Expenses 6. Subtract the Total Expenses from your Total Income 7. The money left is your monthly savings ( place it in your savings account!)
  14. 14. 1. Why do you think a budget is important in healthy family/personal financial planning? 2. What happens if we spend more than we earn? 3. How can we avoid overspending?
  15. 15. 1. What is a budget? 2. Why do we need a budget? 3. What is an expense? 4. What is a need? 5. What is a want? 6. How do we calculate monthly expenses & weekly savings?

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