Balancing a Budget

[Mod 4 Lesson - Balancing a Budget]

DO NOW: Use the order of Operations to Solve

As you come in,

• Get your: Binder, Pencil + CHROMEBOOK

• Sit in assigned seat

• Open up Journal to a Blank Page.

• Begin DO NOW.

Fill in the Blanks

What is your answer to the first DO NOW Problem?

Fill in the Blanks

What is the answer to the 2nd DO NOW question?

Income VS Expense

This is money that is leaving your account. Think fees, bills, taxes, and spending [this includes putting aside money for later like a savings account]

Expenses -

This is money earned through a job [often called a wage or income], present or gift, or money earned in a sale [small business, garage sale, etc.]

Income -

Categorize

Options (6)

Paycheck from Job

Electricity Bill

Won Lottery

Clothes Shopping

Birthday Money

Payment Plan

Determine whether the option represents an INCOME or an EXPENSE

INCOME

EXPENSE

Balancing a Simple Budget

As you start working and earning money it becomes vital [important] to learn how to budget your money.

Budget- a system that allows you to make sure that you never overspend.

Balanced Budget - when your income equals your expenses.

How to Balance a Simple Budget:

How do you BALANCE a BUDGET?

1. ADD up all your income.

2. ADD up all your expenses.

3. Subtract your income from Expenses

Reorder

Order The Steps to Balancing a Simple Budget

• Add up INCOME

• Add up EXPENSES

• Subtract Income and Expenses

• Write answer in a sentence that relates back to the problem

1

2

3

4

• 1
• 2
• 3
• 4

Teacher Model: COPY in BOOK

Maria earns $1,975 from her job each month. Below are her expenses for the month:

•Rent - $700

•Car Payment - $150

•Utilities - $300

•Monthly Student Loan - $375

•Groceries - ?

How much money is available for grocery shopping this month?

Dropdown

Anaya makes $1,200 per month. Below are her expenses for the month:

•Groceries - $325

•Gas - $75

•Phone Bill - $130

•Rent - $500

•Car Payment - ?

How much money is available for her car payments this month?

She can pay ​ ​

Select answer

for her car payment this month.

Drag and Drop

Logan earns $3,850 a month from his job. Below are his expenses for the month:

•Rent - $1,200

•Grocery - $300

•Gas - $150

•Student Loan - $750

•Eating Out - $125

•Savings - $1,000

•Other - ?

How much money can Logan put aside for other expenses?

He can put ​​

Placeholder

aside for other expenses

Drag these tiles and drop them in the correct blank above

$325

$3,525

$335

Drag and Drop

Megan's monthly budget is shown. How much money can she spend on car payments this month?





Megan can spend ​ ​

Placeholder

on her car payments this month.

Drag these tiles and drop them in the correct blank above

$550

$1850

$1450

How to fix an OVER BUDGET?

When your Expenses is MORE than your INCOME you are considered OVER BUDGET. To fix this, you must find an expense that can be decreased. When determining an expense to decrease, first consider: is it a FIXED Expense [same amount each time] or a VARIBLE Expense [can change amount].

• FIXED Expenses: rent, car payments, groceries, utilities, and gas

• VARIABLE Expenses: entertainment, eating out, clothes shopping, and other expenses

Categorize

Options (8)

Rent [pre-set]

Car Payment [pre-set]

Groceries [Set Limit]

Bills

Entertainment

Eating Out

Clothes Shopping

Other Expenses

Determine whether the given expense is considered a VARIABLE [meaning it can change month to month] or a FIXED [doesn't change] expense.

Variable Expense

Fixed Expense

Dropdown

Julie earns $1,300 a month. She noticed that she over spent last month. Below is what she paid:

•Rent - $850

•Food - $175

•Phone Bill - $95

•Bus Ticket - $40

•Entertainment - $100

•Clothing - $60

What can she do to balance her budget?

She can spend [money amount ->] ​

Select answer

[less or more ->]​

Select answer

on [category ->] ​

Select answer

to balance her budget.

Open Ended

Describe what it means to have a balanced budget and why it is important.

Fill in the Blanks

EXIT TICKET [must show in journal to receive credit]:

Maria gets a summer job that pays $1,200 per month and provides a place for her to live, so she does not need to pay rent. Her budget is described in the table shown. How much is Maria's car payment if her budget is balanced?