Does the federal government budget spend your tax dollars

wisely?

Copy the List of Typical Monthly Living Expenses for a Young Adult Below in

Notebook• Housing (rent and utilities)• Health Insurance• Cable T.V.-basic service• Internet• Cell Phone-basic service (calls and texts)• Clothing• Groceries• Restaurants and takeout• Transportation• Education• Entertainment

Discussion Questions

• Are all these experiences absolutely necessary? Why or why not?

• If your monthly income did not cover all these expenses, you would have certain options, such as borrowing money, working more, or eliminating expenses. What are the benefits or consequences of these options?

Discussion Questions

• If you chose to eliminate expenses, how would you decide which expenses to keep and which to eliminate?

• How might these personal budget challenges be similar to and different from those of the federal government?

Budget Vocab

1. Balanced Budget- means the govt. is not spending more than it is taking in.

2. Budget Surplus- money left over.

3. Federal Deficit- The amount of money the govt. has went over on the budget. If we go over we have to borrow.

Federal Deficit and National Debt

Deficit= Round about 1.3 trillion

Debt Clock

4.National Debt- the amount a country owes to lenders. This is all yearly deficits plus interest owed

Budget Vocab

5. Progressive Tax- tax in which the burden falls more on the rich. Ex. Income taxes.

6. Regressive Tax- burden falls more on the poor. Ex. Sales tax

7. Entitlement- benefits provided to those that seek them. Ex. Social Security

8. Earmarks- Spending proposals attached to laws. Usually benefits a legislators home district.

Where Does Our Money Go?

So………………………….

• Does the U.S. Government spend our federal tax dollars wisely?– Don’t talk, just answer. Give me ½ of your

thoughts.