- Define zero-based budget.
- Develop a plan for spending and saving that has both long-term and short-term components.
- Watch Video 3.2
- As you watch the video, record the missing words from pages 64-65 of the Chapter 3 Textbook as they pop up on the left side of the video screen by filling in this form. (pages 64-65).
- Discussion Questions:
- What is a zero-based budget?
- In a zero-based budget, income minus outgo should equal __________?
- What is the envelope system and how does it work?
- Your budget will only work if you follow it. What are some things you can do to make sure you stick to your budget?
- Make a copy of this The Student Budget document, rename it Student Budget-(Your Initials), and move it into your Chapter 3 folder.
- Use the budget form inside the document to create three zero-based budgets: one for each student described and a personal one based on your income (this may include a regular allowance from your parents) and expenses. Fill in all income and expenses on the form with the information provided. Remember to compute net pay by taking 20% out for taxes. Use the following recommended percentages to help setup your budget:
- Giving = 15%
- Saving = 15%
- Food = 10%
- Clothing = 15%
- Transportation = 20%
- Personal = 15%
- Recreation = 10%
- In your Personal Finance Journal-C3 file in your Chapter 3 folder, complete the next row in the table by answering the question listed.