Financial Literacy Sample

Give Every Dollar a Purpose · 5

Topic 01

What Is a Budget?

Ti shoenf oplal og we si n1g1 4c o– n1 t1e8n itn the Student Text.

At the most basic level, a budget is a plan. A successful budget (or plan) involves tracking your income and expenses over a •’‡ ‹Ƥ ’‡”‹‘†ǡ —•—ƒŽŽ› ƒ ‘–Šǡ –‘ ‡•—”‡ ›‘— ƒ”‡ Ž‹˜‹‰ ™‹–Š‹ your means and saving for the future. A budget can be as broad ‘” ƒ• †‡–ƒ‹Ž‡† ƒ• ›‘— ‡‡† ‹– –‘ „‡ –‘ Š‡Ž’ ›‘— ’Žƒ ˆ‘” ›‘—” Ž‘‰Ǧ ƒ† •Š‘”–Ǧ–‡” ‰‘ƒŽ•Ǥ

Parts of a Budget

A budget typically consists of income and expenses. Income is the money you make, or that comes in each month, ™Š‡–Š‡” ˆ”‘ ƒ ‘•‹•–‡– Œ‘„ ™Š‡”‡ ›‘— ‡ƒ” ƒ ’ƒ› Š‡ Ǣ ˆ”‘ ‘–Š‡” ‘†† Œ‘„• •— Š ƒ• „ƒ„›•‹––‹‰ǡ ‘™‹‰ Žƒ™•ǡ ‘” †‘‹‰ ‘–Š‡” Š‘”‡•Ǣ ‘” ˆ”‘ –‹’•ǡ ‹–‡”‡•–ǡ ‘” ‘–Š‡” •‘—” ‡•Ǥ Expenses , on the other hand, are the money that goes out, and that list is usually much longer than the income list. Examples of ‡š’‡•‡• ‹‰Š– ‹ Ž—†‡ǣ - Rent - Bills (cell phone, cable, etc.) - Transportation expenses (car payment, gas, repairs, insurance) - Entertainment (going to the movies, music or video streaming subscriptions, etc.) - Eating out - Clothes —Benjamin Franklin SAMPLE INC SAYS . . . "Beware of little expenses. A small leak will sink a great ship."