Budgeting
is a way of making
the most of your
money
by planning
how you'll spend it.
Let's think a little more
about planning...
What
are some things that you plan
for?
What
about YOU?
What
are some things you plan for?
Write
your answers in your Money Notebook.
When
people plan for something,they
generally make lists.
For example,
Jayson made a list of all
the things he wanted to do
on Saturday. Penny made a
list of all the poeple she
wanted to invite to her birthday
party.
When
you make a budget plan, you'll
also need to start making
lists. List
your earnings
(the
money you get from a job,
allowance or gifts)
AND your
expenses (the money you have
to spend).
UP TO LIST OF BIG IDEAS
II.
Why Budget?
Click
on the arrows below
to see why
Mary and Pedro budget their money.
Follow
these steps to begin creating your own budget.
Use the budget form below.
1
Make
a list how much money you
make each week (or month). These are your
earnings
or incomes.
2
Make
a list of all the things you
buy or pay for every week (or month). Next
to each of these items, write how much it costs.
These are your expenses.
3
Write
down an amount of money that you would like to save
each week (or month). This is your savings.
4
Add
up the totals for your income,
expenses, and savings.
5
Subtract
your expenses and savings
from your income to
see what you have left. NOTE:
These
are starting budgets. They are not yet balanced.
Penny
Jayson
Mary
Pedro
What
about YOU?
What
is your starting budget?
BUDGET
FORM
INCOME
from job and/or allowance:
$
INCOME
from other source (2nd job, gifts):
$
TOTAL
INCOME = $
Expense
#1:
$
Expense
#2:
$
Expense
#3:
$
Expense
#4:
$
Expense
#5:
$
Expense
#6:
$
Expense
#7:
$
TOTAL
EXPENSES = $
SAVINGS
= $
TOTAL
INCOME
- TOTAL EXPENSES
- SAVINGS: $_____
A
Word to the Wise...
Always make sure you include
$-SAVINGS-$ in
your budget— savings
is a way of paying yourself! Try
to save at least 5% of your total income. Click
here
to see you to figure this out.
GOOD
JOB starting to make a budget!
For
a little more practice,
click on the calculator to the right.
When you're finished, continue on
to the next
Big Idea!
UP TO LIST OF BIG IDEAS
IV.
Balancing Your Budget
*
A
budget is balanced when
income equals expenses plus savings.
*
A
budget shortage means that
you do not have enough income
to cover your expenses.
*
A
budget surplus means that
you are making more money than
you are spending. Good job!
If you make more than you spend,
go ahead and put that extra money
into a savings account.
What
are the 3 things
you can do if you find yourself with a budget
shortage?
Answer
You
can:
1.
Cut
your expenses (don't spend as much)
2.
Increase
your income (make more money) or
3.
Use
your savings.
Now
that you know when a budget
is balanced,
when
there is a shortage,
and when there is a
surplus...
look at the starting
budgets above again.
Whose
budget is balanced?
Penny
shortage
balanced
surplus
Jayson
shortage
balanced
surplus
Mary
shortage
balanced
surplus
Pedro
shortage
balanced
surplus
You
!
shortage
balanced
surplus
Help
Penny, Jayson, Mary & Pedro
balance
their budgets.
Click on their
faces, and figure out where they
can
cut
costs or increase savings so that:
Income
= Expenses + Savings
Penny
Jayson
Mary
Pedro
V.
Paying your Bills: More about Checks
GOOD
JOB balancing those budgets!!!
Many
people use checks to pay for items
in their budgets.
Why
do you think people would want
to use checks instead of paying
cash?
Let's
look at a check!
What do you notice?
Roll
your mouse over all the different
parts of the check below.
Let's
practice using checks to keep a budget balanced.
Help Melinda and
Andre Andujar pay their family bills.
Money
Center 
