Explain the difference between a 'need' and a 'want' in the context of budgeting, and provide an example of each.

A 'need' is a basic necessity for survival, such as rent or groceries, while a 'want' is something that enhances your lifestyle but isn't essential, like eating out or going to the movies.

List three examples of expenses that would typically fall under the 'savings' category in the 50/30/20 budget.

Emergency fund contributions, 401k contributions, and debt payments beyond the minimum.

Why does the video suggest that a budget gives you 'permission to spend'?

Because it allows you to allocate funds for different categories, including wants, without feeling guilty, as long as you stick to your plan.

How can adjusting the 50/30/20 rule help you achieve specific financial goals, such as paying off debt?

You can decrease the 'wants' category and increase the 'savings' category to allocate more funds towards debt repayment.

Creating A Personal Budget Lesson Plan for Grade 11th Grade

Lesson Preview

Learning Objective

I can create a personal budget to track income and expenses.

1
The 50/30/20 budget framework allocates 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment.
2
Needs include essential expenses like rent, utilities, and groceries, while wants cover non-essential items such as vacations, eating out, and entertainment.
3
The savings category includes contributions to an emergency fund, retirement accounts, and debt payments beyond the minimum required.

Creating a Personal Budget

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Learning Objective

Warm-Up Video

Key Concepts

Practice Questions

Exit Ticket

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