# Budgeting on a Low Income

## Getting Started

### Prioritizing Your Spending (Short Quiz)

• You spent \$60 per week on gas, so you decide to the bus for half the week
• You canceled your Hulu subscription that costs \$10 per month and kept your Netflix subscription costs \$8 per month
• You are using fans in your home this month instead of using the air conditioning
• You have been cooking a lot so you decide to eat out every day this week
• You go out with your friends every weekend.
• You get tired of washing dishes by hand so you use the dishwasher after every meal.

## Writing Out Your Monthly Budget

### Short Budgeting Quiz

#### # True or False

• It is mandatory to insert your Monthly Income on your budget in order to calculate your savings.

## Complete the Post-test to show what you have learned.

### Drag the matching Need and Want on the right to the correct terms on the left.

• Groceries
Need
• Gasoline
Need
• Movies
Want
• Concert Tickets
Want
• Electricity
Need
• Insurance
Need
• Vacation
Want

### Of the items listed below, which one would definitely be a WANT?

• childcare
• transportation
• electricity
• movie night
• water

### Sam has noticed that his electric bill is at its peak during the summer months. To maximize Sam's savings, what would be his best option?

• Pay more each month so there will be a credit on the next bill
• Keep the air conditioner on 70 degrees all summer and never change it.
• Purchase fans and use them instead of the air conditioner

### Fill in the blank with the correct savings amount.

If someone spends \$100/month on childcare, \$200/month on groceries, \$300 on utilities, \$60 on transportation, \$150/month on miscellaneous expenses, and their monthly income is \$2000, their monthly savings would be

### True of False

• A WANT is something that is essential or required.
• A good example of prioritizing your spending for maximum savings would be cooking at home instead of eating out.
• A new cell phone can be a want or a need.

### Rank the items below according to what would save you the most (top to bottom) using the 'June Budget'.

• No video games in June
• No sporting events in June
• Go grocery shopping 3 times instead of 4 times in June- Saving \$35
• Spend \$20 less when going out with friends
• Purchase fans instead of using A/C- Saving \$15