Copyright Goodheart-Willcox Co., Inc. May not be reproduced or posted to a publicly accessible website. 43 CHAPTER 3 Budgeting: Using Your Money Wisely Why would you need to create a budget? Learning Objectives When you complete Chapter 3, you will be able to: LO 3-1 Explain the purpose of a budget. LO 3-2 Discuss income. LO 3-3 Discuss expenses. LO 3-4 Calculate discretionary income. LO 3-5 List steps to create a monthly budget. Key Terms budget income expense pay yourself first fixed expense variable expense discretionary income Reading Prep Before reading this chapter, review the table of contents for this text. As you read, consider how this chapter fi ts into the “bigger picture” presented by this text. College and Career Readiness