FL10.6

Examine how personal budgets contribute to effective financial planning.

Indicators for this outcome
(a) Define budgeting and describe the intent of a personal budget.
(b) Explore the concepts of needs and wants and how they impact financial decisions.
(c) Identify and justify information that may be in a personal budget, including income, savings, and expenses.
(d) Explain key considerations when developing a budget, including regular (e.g., biweekly, monthly), irregular, and unexpected income and expenses.
(e) Discuss how personal goals (e.g., buying a car, saving for a major purchase, moving away for education) impact a budget.
(f) Develop a plan to make a major expense (e.g., trip, musical instrument, vehicle).
(g) Discuss how budgeting decisions vary at different stages of life to reflect shifting personal goals.
(h) Create and justify a personal budget that includes income and expenses based on a real or hypothetical situation.
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