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Budgeting
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Andy purchased notes and pen for his school.
Needs (Flexible)
Andy purchased new clothes, because he loved that design
Want (Discretionary)
Andy paid his house rent, in the first day of month
Needs (Fixed)
Andy went to Eaton Centre to buy his clothes because his clothes are wear off
Needs (Flexible)
Andy went to Nofrills and purchased Milk, Egg, and Bread
Needs (Flexible)
Andy went to coffee shop for his coffee in the morning
Want (Discretionary Expenses)
What budgeting system use mostly cash?
Envelope System
LONG LONG time ago, when there was no money, which system people use to exchange their goods?
Barter System
What are the last step to set up your budget?
Compare you income and expenses (budget!)
What are the fourth step to set up your budget?
Determine Discretionary Expense
What are the third step to set up your budget?
Determine Flexible Expense
What are the second step to set up your budget?
Determine Fixed Expense
What are the first step to set up the budget?
Determine your income!
Andy purchased airplane tickets to go travel
Wants (discretionary)
Andy bought a food for his puppy
Needs (Flexible)
Andy adopted puppy
wants (discretionary)
Hydro BIll
Needs (Flexible)
Andy bought a bicycle so that he can ride to his work
Wants (discretionary)
Internet Cable Bill
Needs (Fixed)
Andy upgraded his Smartphone because old phone is not working
Needs (Flexible)
Andy upgraded his smartphone because the new iPhone came out
Wants (Discretionary)
Andy buys computer for his class needs or wants?
Needs (Flexible)
McDonalds
Want (Discretionary)
Pizza Pizza
Wants (Discretionary)
Insurance (home/car)
Needs (fixed)
Gas for Car
Needs (Flexible)
Cell-Phone bill
Needs (fixed)
TTC (pay to ride)
Needs (Flexible)
TTC (Monthly pass)
Needs (Fixed)
House
Needs (Fixed)
Grocery
Needs (Flexible)
What are the SMART Goal Stand for?
Specific, Measurable, Achievable, Realistic, Time-Bound
Discretionary needs or wants?
wants
Fixed expense needs or wants?
needs
Flexible expense is needs or wants?
needs
Discretionary expenses
Money that you choose to spend. Spending money that you want
What are the flexible expenses?
Necessary Spending and amount is changing month to month or year to year
What is Fixed Expense?
Necessary spending and amount is same month to month or year to year
What are the three types of expenses?
Fixed, Flexible, & Discretionary
What is expense?
Money that you spend
What is income?
Money that you earn (work & government)
What are the two components to set up your Budget?
Income and Expense
What is a budget?
 a plan to spend your money.