ARTICLE: What Is a Budget?
Now that you’ve had a chance to see the challenges of balancing all of the things that you wanted to do for Enzo with the needs of day to day life, let’s get back to basics and consider the reasons that you would want to create a budget.  Why is budgeting so important to financial success?  Read the short article about the purpose of a budget.  Then, answer the questions on your worksheet.

VIDEO: Gross Pay vs. Net Pay: What’s the Difference?                 
A vital part of creating a budget is understanding how much money you have available to budget.  You might think that’s as simple as multiplying your hourly wage by your total hours worked–but that’s not the case. Watch this video about the difference between gross and net pay.  Then, answer the questions.

VIDEO: Needs vs. Wants
The next thing you’ll need to do when creating a budget is to look at your expenses and figure out which ones are needs and which ones are wants.  Watch this video to learn about the difference between needs and wants.  Then, answer the questions.

If time remains, you can play www.playmoneymagic.com.

LEARNING TARGETS:

• I can describe the purpose of a budget.
• I can classify expenses as needs and wants.
• I can explain the difference between gross pay and net pay.