Sept 4

Bel l Rin ge r Write 10 words that are related to the word BUDGET

Ch apte r 6, Lesso n 2 Managing a Budget Explain why a budget is helpful. Identify the parts of a budget. List the steps in setting up a budget.

How can a budget help you?  You just got paid, so you decide to go have some fun.   

$95.00 on shoes $220.00 on some new clothes $50.00 on some movie tickets and snacks

How much money do you have left?

Bil ls Rent $300.00 Car Payment $180.00 Car Insurance $50.00 Electric bill $60.00 Cable Bill $80.00 Food $???? Gas for car ????? Will you have enough at the end of the month to meet all of your expenses?

Bu dget  Help you manage money wisely  Record of expenses and income  Help you determine if you can afford that new shirt, or new electronic toy.

What are the p arts o f a budget?  Income: Money you earn- Net income  Expenses: Money you spend  Fixed  Rent, car payments, insurance

 Variable  Food, utilities, clothing

 Savings

Ho w d o you set u p a budget? List your income List your regular fixed expenses List your variable expense: estimate amount based on your history  List new expenses  List savings  Check totals to make sure expenses are less than income.   

St ayin g o n Bu dget  You see a pair of jeans that would set you over your clothing budget. Can you buy them?  Reallocate from another item   

No movie this week Never reduce savings amount Never NOT pay a bill

Bu dgeting  Helps you track your money  Helps you spend more wisely  Helps you plan for the future

So h ow much do yo u all ocate to w hat expense ?          

30% housing 18% Transportation 16% Food 5% Utilities 4% Savings 5% Clothing 5% Medical/Dental 5% Recreation 8% Miscellaneous Expenses 4% Other Debts

Let’s sa y yo u earn Rent $600.00 Payment $240.00 $2000 p er Car month Gas $80.00 Insurance Food Clothing Medical/Dental Recreation Cell Phone Cable Electricity Savings Credit Cards Hair care Toiletries Make up Life Insurance TOTAL:

$40.00 $320.00 $100.00 $100.00 $100.00 $40.00 $20.00 $40.00 $80.00 $60.00 $80.00 $60.00 $20.00 $20.00 $2,000.00

Ho mework  Chapter 6, lesson 2 review questions  Prepare a budget: Worksheet  Must be individual, any copying will result in a zero.

 Workbook activity 31