Money Smart for Young People

Grades 9-12

Lesson 3: Can You Pay Your Bills?

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Sinking Ship

Money Smart for Young People Grades 9 -- 12

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Beware of little expenses. A small leak will sink a great ship.

1-2-3 Budget

Money Smart for Young People Grades 9 -- 12

Three steps to building a budget…

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Keep track of your spending

Identify your income and expenses

Analyze cash flow and look for ways to increase your income and decrease expenses

Budget Breakdown

Money Smart for Young People Grades 9 -- 12

Income:

• Various jobs or work, like cutting grass or babysitting wages
• Full- or part-time employment
• Allowances
• Odd jobs
• Interest and dividends
• Other sources, including tips

Expenses:

• Bills (for example: cell phone or cable bill, rent)
• Transportation expenses (for example: vehicle payment, gas, insurance, bus or transit fares)
• Movies, music purchases, game downloads or other entertainment
• Clothes or accessories
• Eating out
• Personal items (makeup, cologne, and so on)
• Savings for college or other future purchases

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Cash flow is the relationship between income and expenses

Fixed expenses do not change from month to month (for example: rent and auto loan payments)

Flexible expenses might change from month to month (for example: food and gas)

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