Budgeting Check-in

Budget

• Anything that you might incur an expense for

• Is a spending plan for managing your money that includes income and expenses

• All expenses deducted from income before net pay can result.

• Income after all deductions have been paid.

What are the steps to creating a budget?

• Determine Income

• Identify Expenses

  & Track Spending

• Develop the plan

• Implement 

  & Track

• Review & Adjust

Fixed expenses

• Is a spending plan for managing your money

• Income from all possible sources

• Expenses that equal all the fixed & variable expenses.

• Expenses that remain the ssame month after month

Variable expenses

• Necessary things or items that are paid monthly

• Expenses that increase/decrease monthly/yearly

• Is a spending plan for managing your money that includes income and expenses.

• Expenses that remain the same over a period of time.

^Wants

• Necessary items for life that are paid monthly/yearly such as food, housing, transportation, utilities, insurances

• Expenses that equal all the fixed and variable expenses added together

• Things or tems that a person would like to own or purchase that is not necessary for life; Ex. entertainment, video games, etc.

• Income from all possible sources

Needs

• Necessary items that are paid monthly./yearly such as food, housing, transportation, utilities, & Insurance

• Things you would like to have but are not necessary for life.

• Income from all sources that are spent for necessary items

• Anything that you might incur an expense for.

James spent $151.09 on gas in April, $178.56 on gas in May, and $209.86 on gas in June. What is his average monthly expenditure for gas?

Find the total monthly expenses. Living, $1,376.10;

fixed, $2098.76; and monthly share of annual, $714.52.

The Smith’s have monthly living expenses of $1,993.81, monthly fixed expenses of $2,345.12, and annual expenses of $7,177.44. What is their monthly share of annual expenses? What is their total monthly expenditure?

• Monthly Share of Annual = $598.12 Total Monthly Expenditure = $4,937.05

• Monthly Share of Annual = $7,177.44

  Total Monthly Expenditure = $11,516.37

• Monthly Share of Annual = $959.70

  Total Monthly Expenditure = $4,937.05

• Monthly Share of Annual = $959.70

  Total Monthly Expenditure = $1993.81

The Barrett family budgeted $3,960.00 for total expenditures in April. They spent $3,876.14. Were they within their budget?

• Yes, they spent $83.86 less than they budgeted.

• No, they spent $83.86 more than they budgeted.