Budgeting Basics

Subject: Financial Literacy  ·  Grade level: 8th

Track income & expenses, apply the 50/30/20 rule, and start an emergency fund.

In this lesson

• Start with income and expenses
• The 50/30/20 rule
• Why emergency funds come first

Key terms

Net income

What lands in your account after taxes.

Fixed expense

Same amount each month (rent, phone).

Variable expense

Changes month to month (food, gas, fun).

Discretionary

Wants you can cut if needed (subscriptions, eating out).

Budgeting Basics lesson on BrightPath

BrightPath Tutoring offers free interactive lessons and 1-on-1 tutoring for students in grades 3–12. Based in the San Fernando Valley, Los Angeles, CA.