Lesson 2.  Creating a Budget = 5 minutes  (Placard #6)

Facilitator: “The second lesson is called ‘Creating a Budget’.  Who can tell me what a budget is?  Please raise your hand” [Facilitator fields guesses for 1 min, then shows Placard #7]

Budget = a plan you make and follow, to pay for your expenses with your income. 

“Keep in mind that Expenses can be both Needs AND Wants. What does a budget look like?  You have one on your worksheet.  It looks like a big “T”. (Placard #8)  “Look at the Sample Budget at the top of your worksheet.  In this budget we’ve added up all the Expenses to get the Total Expenses.  We’ve added up all the Income to get the Total Income.  Who can tell me how much the Total Expenses are?  How much is the Total Income?  Who can tell me what Disposable Income means?” ( = 1 min ) (Placard #9)

Disposable Income = Total Income – Total Expenses 

“This is how a budget works.  Disposable Income is the money you have left over after you’ve paid for all your NEEDS.  This is money that you can do whatever you want with, that you can spend on your WANTS.”