Word bank: Adjusting · budget · guideline · take-home

1. A is a plan made before you spend.
2. Always budget from pay.
3. 50/30/20 (needs/wants/savings) is a starting — adjust it to your life.
4. Review monthly. the plan is part of the plan.

1. Your take-home pay is $1,800 a month.

   1. Using the 50/30/20 guideline, about how much goes to savings and debt payoff?

   • A. $180
   • B. $540
   • C. $900
   • D. $360

2. You planned $80 for eating out this month but actually spent $130.

   2. What's the most useful next step?

   • A. Look at why it happened, then adjust next month's plan or cut somewhere else.
   • B. Give up on budgeting — it clearly doesn't work.
   • C. Put the extra on a credit card and move on.
   • D. Stop tracking food so it doesn't feel bad.

3. 3. You should build your budget from your gross pay (before taxes), since that's what you earned.

   True/False

1. 1. Take-home pay is $2,400 a month. Using 50/30/20, how much goes to needs, wants, and savings?

2. 2. Needs actually cost $1,450 of that $2,400. If savings stays at $480, how much is left for wants?

1. 1. Why do so many people stop budgeting after a month or two? How could you make it easier to stick with?

2. 2. How might the 50/30/20 split look different for a high school student living at home versus a recent graduate paying rent?