What is a budget?

What is the stock market?

BUDGET

Fixed Cost Variable Cost Budget

Fixed Cost - amounts that stay the same every month like a car payment or rent

Variable Cost - amounts that change like food or entertainment or vacations

Budget - is a plan for how people will spend their money

Key Points Fixed Costs are amounts that stay the

same every month like a car payment or rent

Variable Costs are amounts that change like food or entertainment or vacations

A budget is a plan for how people will spend their money

Income is the amount of money a person makes

Pay CheckIncome Expenditures

Real Estate Agent 2000   National taxes 200

Watering Lawns 250   State taxes 50Interest from savings 50   House payment 1250

 Food and restaurants 300

 Travel, clothes, and entertainment 350

      Savings account 200

What is the total income? What are the total expenditures? Does this budget work?

Salary.com

Find out how much you make a year and divide it by 12

Which of the following is a fixed expenditure? $300 for food and restaurants B. $350 for travel, clothes and entertainment $1,250 for a house payment $2,000 for Real Estate   Which of the following is a variable expenditure?

$300 for food and restaurants C. $250 for watering lawns

$1,250 for a house payment D. $2,000 for Real Estate

Vocabulary Gross Income Net Income Taxes

Vocabulary Gross Income – Total money made Net Income – Money left after taxes Taxes – Money taken out by the

government

Taxes Taxes pay for things like schools, roads,

police and firefighters. Gross income is the total money that is

made Net income is the money left after taxes

(Think of a net catching what is left)

We will use 25% for federal taxes and 4% for state taxes.

Paycheck for Joseph

Payment for yardcare   $1500.00

  Federal taxes

  State taxes

Check amount  

Paycheck for Joseph

Payment for yardcare   $1500.00

  Federal taxes -$375.00

  State taxes

Check amount  

Paycheck for Joseph

Payment for yardcare   $1500.00

  Federal taxes -$375.00

  State taxes -$60.00

Check amount  

Paycheck for Joseph

Payment for yardcare   $1500.00

  Federal taxes -$375.00

  State taxes-$60.00

Check amount   $1065

Define net income Define gross income

Find the federal and state taxes on someone who makes $1000 (STEPS 2 and 3)

Salary.com Find a job you want Divide the total salary by 12 to get your

monthly income. Figure out your monthly gross and net

pay for your job

______ 25. Which of the following is Joseph’s gross income? $1,000 C. $200 $100 D. $700

  ______ 26. Which of the following is

Joseph’s net income? $1,000 C. $200 $100 D. $700