Importance of Budgeting - Grade 8

You are placed in charge of your household budget for the month. What is one of the first things you should examine as you plan the budget?

• The number of visitors you will have in the next month

• The average income for your neighborhood

• The number of chores each person has

• The income for the household

What are some benefits of following a budget for your household?

• You can plan for saving money.

• You can see where you need to adjust your spending

• You can see how other households are spending their time.

• You can make sure your household is not spending more than it is earning.

• You are in control of your money.

Why is it important to pay yourself first by putting money in your savings account?

• The government takes what you don't save.

• You will find that you spend more time daydreaming instead of working.

• The bank requires you to save a certain amount of money.

• If we don't plan for savings first, it usually doesn't happen.

Your household income is $4000 a month.

Here are the household's expenses:

Savings: $400

Mortgage: $1200

Utilities (Electric, Water): $300

Groceries: $500

Phone Service: $200

Vehicle/Transportation Costs: $600

Entertainment: $500

Does your household have enough income to pay for all of the expenses?

• Yes, by $500

• No, by $300

• Yes, by $300

• No, by $200

Your family wants to take a vacation next year, but you need to save at least $2000 more in the next three months to secure everything. What would you adjust in the budget to save what you need? Check as many as you would like.

• Spend less on groceries

• Spend less on entertainment

• Spend less on utilities

• Spend less on transportation/vehicle costs

• Spend less on phone service

Of the 6 benefits described in the article, which benefit is most significant to you in regards to using a budget? Explain why in 1 sentence.

Benefits Listed:

1.Creates a plan for your money

2.Identifies problem areas

3.You can see where your money is going

4.A budget helps you plan for savings

5.Ensures you're not spending more than you're making

6.Puts you in control of your finances