Budget Basics

Budget Basics

Name: ______Class: ______Date: ____

Directions:

• View the Budget Basics PowerPoint (click on the link) and answer the questions below as you go.
• Save your work. Do not print today.

1.  What is a budget? ______

2.  A good budget should be?

______, ______, ______

3.  What are 2 important things to remember when creating a budget?

______, ______

Below are Budget Categories—Fill in the appropriate sub-categories for each.

Income Expenses Savings

4.  / 5.  / 6. 
7.  / 8.  / 9. 
10.  / 11. 
12.  / 13. 

14.  Define Income: ______

15.  What is Gross Income? ______

16.  What is Net Income? ______

17.  Taxes can range from ______% to _____%!!

18.  Your salary is your (Gross or Net) income?

19.  If your salary is $40,000 and you deduct (subtract) 25% for taxes and deductions, what is your Net Income going to be? ______

20.  Savings is unspent ______.

List the types of Savings and explain each:

Type of Savings: / Explanation:
21.  / 22. 
23.  / 24. 
25.  / 26. 
27.  / 28. 

29.  What is an advantage of saving your money early? ______

30.  A cost to meet a need or pay a debt is an ______.

31.  Three types of expenses are: ______, ______, ______.

32.  Fixed Expenses are: ______.

33.  List 4 examples of Fixed Expenses: ______, ______, ______, ______.

34.  A cost that occurs regularly but may vary in amount is called a ______.

35.  List 4 examples of Variable Expenses: ______, ______, ______, ______.

36.  Discretionary expenses are a cost determined by personal ______that may be ______.

37.  List 4 examples of Discretionary expenses: ______, ______, ______, ______.

List the safe percentages of your income to spend on the following:

Major Budget Item / Safe Percentages / Major Budget Item / Safe Percentages
38.  Housing / 39.  Health
40.  Food / 41.  Savings
42.  Clothing / 43.  Credit Payments
44.  Transportation / 45.  Misc.

46.  When developing a budget you should set your ______, and know what you want to ______with your money.

47.  You should establish your budget with Income, Savings and ______.

48.  Budgets are an important tool for managing your money? T or F

49.  Why is it important for a family to have a budget?

D. Fields 15-16