Intro to Budgeting

What is a "budget?"

• A shopping list

• A financial crisis

• A spending plan

• A savings account

Which budgeting rule did we learn about in class today?

• 50-30-20 rule

• 70/20/10 rule
• 60/20/20 rule
• 80/10/10 rule

True or False: Following the 50-30-20 budgeting rule will work perfectly for everyone.

• True

• False

True or False: The 50-30-20 budgeting rule should be based on your after-tax income.

• True

• False

According to the 50-30-20 rule, 50% of your income should go towards...

• Savings
• Wants

• Needs
• Debt Repayment

According to the 50-30-20 rule, 30% of your income should go towards...

• Savings
• Wants
• Needs
• Investments

According to the 50-30-20 rule, 20% of your income should go towards...

• Entertainment
• Savings and debt repayments
• Groceries
• Rent

True or False: Paying your monthly mortgage (home loan) is debt repayment, so you should budget 20%.

• True

• False

True or False: Paying extra (beyond the amount due that month) towards your home loan is debt repayment, so you should budget 20%.

• True

• False

Having clothes to wear is a...

• Want

• Need

• Savings

• Investment