Budget Elements: Income, Expenses, Savings, Debt
Understanding the Four Key Components Grade 9 Business Individual Learning Session
What is Income?
Money you receive regularly Examples: salary, wages, allowance, gifts Can be earned (job) or unearned (interest) Foundation of your budget - determines spending power
Understanding Expenses
Money you spend on goods and services Fixed expenses: rent, insurance, phone bill Variable expenses: food, entertainment, clothing Essential vs. non-essential spending
Savings vs. Debt: Two Sides of the Coin
{"left":"Money set aside for future goals\nEmergency fund for unexpected costs\nBuilds financial security over time\nMoney you owe to others","right":"Credit cards, loans, borrowed funds\nRequires interest payments\nCan limit future financial choices"}
Budget Element Sorting Challenge
Sort these items into the correct budget category: $50 birthday money $15 movie ticket $200 car payment $100 in savings account Which category does each belong to?
Key Takeaway
"A budget is telling your money where to go instead of wondering where it went." - John C. Maxwell