What is the first step in creating a personal budget, according to the video?

Track your income and expenses.

Why is it important to track both income and expenses when creating a budget?

Tracking income and expenses helps you understand where your money is coming from and where it is going, which is essential for making informed financial decisions.

Explain the difference between fixed and variable expenses, providing an example of each.

Fixed expenses are consistent and predictable (e.g., rent), while variable expenses fluctuate (e.g., groceries).

Why does the video suggest that you should strive to have more income than expenses?

Having more income than expenses allows for saving, investing, and building a financial cushion, leading to greater financial stability and security.

Creating A Personal Budget Lesson Plan for Grade 11th Grade

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Learning Objective

I can create a personal budget and explain how it helps manage finances.

1
The first step in creating a budget is to track your income and expenses using a money journal.
2
When determining your expenses, you can look back at past checking or credit card statements, look forward to budget for fixed expenses, and use your money journal to analyze spending.
3
The 50-20-30 rule suggests allocating 50% of your income to essential expenses, 20% to savings and debt repayment, and 30% to lifestyle choices.

Creating a Personal Budget

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Learning Objective

Warm-Up Video

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Practice Questions

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