Let’s Work This Problem and Solve It!
Activity 4-6
Activity 4-6
A
A BB CC DD EE FF GG HH II JJ
1
1 ITEMITEM SSEEP P OOCCT T NNOOV V DDEEC C JJAAN N FFEEB B MMAAR R AAPPR R MMAAYY 2
2 INCOME ITEMS INCOME ITEMS
3
3 AlAllolowawancnce e 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.0000 4
4 PPaarrtt--ttiimme e wwoorrk k 332255..000 0 332255..000 0 332255..000 0 332255..000 0 332255..000 0 332255..000 30 32255..000 30 32255..000 0 332255..0000 5
5 INCOMEINCOME 72725.5.00 7200 725.5.00 00 72725.5.00 00 72725.5.00 00 72725.5.00 00 72725.5.00 00 72725.5.00 00 72725.5.00 00 72725.5.0000 6
6 7
7 FIXED EXPENSE ITEMS FIXED EXPENSE ITEMS
8 R
8 Reennt t 335500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..0000 9
9 FFIIXXEED D EEXXPPEENNSSEES 35S 3500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..000 350 3500..000 350 3500..000 30 35500..0000 10
10 11
11 VARIABLE EXPENSE ITEMS VARIABLE EXPENSE ITEMS
12
12 GrGrooceceririeses/p/peersrsononal al ititemems s 21216.6.50 50 21216.6.50 50 212166.5.50 0 21216.6.50 50 212166.5.50 0 221616.5.50 0 21216.6.50 50 21216.6.50 2150 216.6.5050 13
13 VVAARIRIAABLBLE E EEXXPEPENSNSEES S 212166.5.50 0 21216.6.50 50 212166.5.50 0 21216.6.50 50 21216.6.50 50 221616.5.50 0 21216.6.50 50 212166.5.50 210 216.6.5050 14
14 15 15
TOTAL EXPENSES
TOTAL EXPENSES 56566.6.50 5650 566.6.50 50 56566.6.50 50 56566.6.50 50 56566.6.50 50 56566.6.50 50 56566.6.50 50 56566.6.50 50 56566.6.5050 16
16 17
17 SURPLUSSURPLUS 15158.8.50 1550 158.8.50 50 15158.8.50 50 15158.8.50 50 15158.8.50 50 15158.8.50 50 15158.8.50 50 15158.8.50 50 15158.8.5050
74 74
Budget Beginnings Budget Beginnings
Visual 4-1 Visual 4-1
Money Math
Money Math(Lesson 4)(Lesson 4)
©
©Copyright 2008 by Copyright 2008 by The Curators of the University of Missouri, The Curators of the University of Missouri, a public corporationa public corporation
A
A BB CC DD EE FF GG HH II JJ
1
1 IITTEEM M SSEEP P OOCCT T NNOOV V DDEEC C JJAAN N FFEEB B MMAAR R AAPPR R MMAAYY 2
2 INCOME ITEMS INCOME ITEMS
3
3 AlAllolowawancnce e 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.00 00 40400.0.0000 4
4 PPaarrtt--ttiimme e wwoorrk k 332255..000 0 332255..000 0 332255..000 30 32255..000 0 332255..000 0 332255..000 0 332255..000 0 332255..000 0 332255..0000 5
5 SSaavviinnggs s wwiitthhddrraawwaal l 333333..333 3 333333..333 3 333333..333 33 33333..333 3 333333..333 3 333333..333 3 333333..333 3 333333..333 3 333333..3333 6
6 GRGROSOSS S ININCOCOME ME 10105858.3.33 13 105058.8.33 33 10105858.3.33 3 10105858.3.33 3 10105858.3.33310105858.3.33310105858.3.33 3 10105858.3.33 13 105058.8.3333 7
7 8
8 DEDUCTIONS DEDUCTIONS
9
9 FFeeddeerraal l iinnccoomme e ttaax x ((1155%%) ) 4488..775 5 4488..775 5 4488..775 5 4488..775 5 4488..775 5 4488..775 5 4488..775 5 4488..775 5 4488..7755 1
10 0 SSttaatte e iinnccoomme e ttaax x ((44%%) ) 1133..000 0 1133..000 0 1133..000 0 1133..000 0 1133..000 0 1133..000 0 1133..000 0 1133..000 0 1133..0000 1
11 F1 FIICCA A ((88%%) ) 2266..000 0 2266..000 0 2266..000 20 266..000 20 266..000 0 2266..000 0 2266..000 0 2266..000 0 2266..0000 1
12 2 TTOOTTAAL L DDEEDDUUCCTTIIOONNS S 8877..775 5 8877..775 5 8877..775 5 8877..775 5 8877..775 8 75 8 7..775 5 8877..775 5 8877..775 5 8877..7755 13
13 14
14 NET INCOMENET INCOME 97970.0.58 58 97970.0.58 58 97970.0.58 58 97970.0.58 58 97970.0.58 9758 970.0.58 9758 970.0.58 58 97970.0.58 58 97970.0.5858 15
15 16
16 FIXED EXPENSE ITEMS FIXED EXPENSE ITEMS
1
17 7 RReennt t 335500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..000 0 335500..0000 1
18 8 BBaassiic c pphhoonne e sseerrvviicce e 1100..000 0 1100..000 0 1100..000 0 1100..000 0 1100..000 1 00 1 0..000 1 00 1 0..000 0 1100..000 0 1100..0000 1
19 9 CCaabblle e tteelleevviissiioon n 77..550 0 77..550 0 77..550 0 77..550 0 77..550 0 77..550 0 77..550 0 77..550 0 77..5500 2
20 0 IInntteerrnneet t aacccceesss s 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..0000 2
21 1 FFIIXXEED D EEXXPPEENNSSEES S 337722..550 0 337722..550 0 337722..550 30 37722..550 0 337722..550 0 337722..550 0 337722..550 0 337722..550 0 337722..5500 22
22 23
23 VARIABLE EXP. ITEMS VARIABLE EXP. ITEMS
24
24 GrGrococereriieses//pepersrsononal al iitetemms s 21216.6.50 50 21216.6.50 50 21216.6.50 50 21216.6.50 2150 216.6.50 50 21216.6.550 20 21616..50 250 21616..50 50 21216.6.5050 2
25 5 LLoonng g ddiissttaanncce e pphhoonne e ccaalllls s 2255..000 0 2255..000 0 2255..000 0 2255..000 0 2255..000 0 2255..000 0 2255..000 0 2255..000 0 2255..0000 2
26 6 EEaattiinng g oouut t 112255..000 0 112255..000 1 20 1 255..000 0 112255..000 0 112255..000 0 112255..000 0 112255..000 0 112255..000 0 112255..0000 2
27 7 GGaassoolliinne e 5500..000 0 5500..000 0 5500..000 0 5500..000 0 5500..000 0 5500..000 0 5500..000 0 5500..000 0 5500..0000 28
28 SSchchooool/l/enentterertataiinmnmeent nt 10100.0.00 00 10100.0.00 00 10100.0.00 00 10100.0.00 00 10100.0.00 00 110000.0.00 0 10100.0.00 00 10100.0.00 00 101000.0.000 29
29 VVAARIRIAABBLE LE EXEXPPEENSNSES ES 51516.6.50 50 51516.6.50 50 51516.6.50 5150 516.6.50 550 51616..50 50 51516.6.550 0 51516.6.50 50 51516.6.50 50 51516.6.5050 30
30 31 31
TOTAL EXPENSES
TOTAL EXPENSES 88889.9.00 00 88889.9.00 00 88889.9.00 00 88889.9.00 00 88889.9.00 8800 889.9.00 8800 889.9.00 00 88889.9.00 00 88889.9.0000 32
32 33
33 SURPLUSSURPLUS 8811..558 8 8811..558 8 8811..558 8 8811..558 8 8811..558 8 8811..558 8 8811..558 8 8811..558 8 8811..5588
Visual 4-2
Visual 4-2
A
16 FIXED EXPENSE ITEMS FIXED EXPENSE ITEMS
1
23 VARIABLE EXPENSE ITEMS VARIABLE EXPENSE ITEMS
24
31 PERIODIC EXPENSE ITEMS PERIODIC EXPENSE ITEMS
3
©Copyright 2008 by Copyright 2008 by The Curators of the University of Missouri, The Curators of the University of Missouri, a public corporationa public corporation
A
16 FIXED EXPENSE ITEMS FIXED EXPENSE ITEMS
1
24 VARIABLE EXPENSE ITEMS VARIABLE EXPENSE ITEMS
25
32 PERIODIC EXPENSE ITEMS PERIODIC EXPENSE ITEMS
3
78 78
Check It!
Check It!
Visual 4-5 Visual 4-5
Money Math
Money Math(Lesson 4)(Lesson 4)
©
©Copyright 2008 by Copyright 2008 by The Curators of the University of Missouri, The Curators of the University of Missouri, a public corporationa public corporation
I
ITTEEM M SSEEP P OOCCT T NNOOV V DDEEC C JJAAN N FFEEB B MMAAR R AAPPR R MMAAYY
INCOME ITEMS INCOME ITEMS
P
Paarrtt--ttiimme e wwoorrk k 3300..000 0 3300..000 0 3300..000 0 3300..000 0 3300..000 0 3300..000 0 3300..000 0 3300..000 0 3300..0000
INCOME
INCOME 3300..000 0 3300..000 0 3300..000 0 3300..000 0 3300..000 0 3300..000 0 3300..000 0 3300..000 0 3300..0000
FIXED EXPENSE ITEMS FIXED EXPENSE ITEMS
S
Saavve e tthhe e RRaaiinnffoorreesst t FFuunnd d 22..000 0 22..000 0 22..000 0 22..000 0 22..000 0 22..000 0 22..000 0 22..000 0 22..0000 L
Looaan n RReeppaayymmeennt t 22..778 8 22..778 8 22..778 8 22..778 8 22..778 8 22..778 8 22..778 8 22..778 8 22..7788 F
FIIXXEED D EEXXPPEENNSSEES S 44..778 8 44..778 8 44..778 8 44..778 8 44..778 8 44..778 8 44..778 8 44..778 8 44..7788
VARIABLE EXPENSE ITEMS VARIABLE EXPENSE ITEMS
E
Enntteerrttaaiinnmmeennt t 1100..000 0 1100..000 0 1100..000 0 1100..000 0 1100..000 0 1100..000 0 1100..000 0 1100..000 0 1100..0000 F
Foooodd//ssnnaacckks s 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..0000 C
Cllootthhiinng g 1100..000 0 1100..000 0 1100..000 0 1100..000 0 1100..000 0 1100..000 0 1100..000 0 1100..000 0 1100..0000 V
VAARRIIAABBLLE E EEXXPPEENNSSEES S 2255..000 0 2255..000 0 2255..000 0 2255..000 0 2255..000 0 2255..000 0 2255..000 0 2255..000 0 2255..0000 S
SAAVVIINNG G 33..000 0 33..000 0 33..000 0 33..000 0 33..000 0 33..000 0 33..000 0 33..000 0 33..0000
PERIODIC EXPENSE ITEMS PERIODIC EXPENSE ITEMS
G
Giifftts s 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..000 0 55..0000 W
Waatteer r ppaarrk k 88..000 0 88..000 0 88..000 0 88..000 0 88..000 0 88..000 0 88..000 0 88..000 0 88..0000 P
PEERRIIOODDIIC C EEXXPPEENNSSEES S 1133..000 0 1133..000 0 1133..000 0 1133..000 0 1133..000 0 1133..000 0 1133..000 0 1133..000 0 1133..0000
TOTAL EXPENSES
TOTAL EXPENSES 4455..778 8 4455..778 8 4455..778 8 4455..778 8 4455..778 8 4455..778 8 4455..778 8 4455..778 8 4455..7788
SURPLUS
SURPLUS -1-15.5.78 78 -1-15.5.78 78 -1-15.5.78 78 -1-15.5.78 78 -1-15.5.78 78 -1-15.5.78 -178 -15.5.78 78 -1-15.5.78 78 -1-15.5.7878
Josh, I think that I can help you. I’ve prepared a budget spreadsheet for you. That’s a list of your Josh, I think that I can help you. I’ve prepared a budget spreadsheet for you. That’s a list of your monthly income and expenses. It will help you see how much money you have for each month and monthly income and expenses. It will help you see how much money you have for each month and what your expected expenses are. Right now you have a problem because you have a budget deficit.
what your expected expenses are. Right now you have a problem because you have a budget deficit.
That means that you are planning to spend more each month than the money you have available.
That means that you are planning to spend more each month than the money you have available.
Sometimes people have budget surpluses. That means that they have more money available each Sometimes people have budget surpluses. That means that they have more money available each month than what they expect to spend. Too bad that’s not your problem.
month than what they expect to spend. Too bad that’s not your problem.
If you look at the spreadsheet, you’ll see that I have several categories of expenses. Fixed expenses If you look at the spreadsheet, you’ll see that I have several categories of expenses. Fixed expenses don’t vary from month to month. For you, the donation to the rainforest fund is a fixed expense.
don’t vary from month to month. For you, the donation to the rainforest fund is a fixed expense.
Since you’re my good friend, I’ve decided you can pay part of the $25 you owe me each month.
Since you’re my good friend, I’ve decided you can pay part of the $25 you owe me each month.
Then it won’t be so hard. That payment is also a fixed expense. You also have some variable Then it won’t be so hard. That payment is also a fixed expense. You also have some variable expenses. These expenses can change from month to month. For example, one month you might expenses. These expenses can change from month to month. For example, one month you might spend more for food or clothing than in another month.
spend more for food or clothing than in another month.
You also have some periodic expenses. These occur once in a while. The trip to the water park and You also have some periodic expenses. These occur once in a while. The trip to the water park and gifts for holidays are periodic expenses. I also included the saving your mother recommended. It’s gifts for holidays are periodic expenses. I also included the saving your mother recommended. It’s only $3 per month. That’s not so bad. If you look at the entire spreadsheet, you’ll notice that you only $3 per month. That’s not so bad. If you look at the entire spreadsheet, you’ll notice that you only have $30 to spend each month. There are 9 months in the school year so I divided $270 by 9.
only have $30 to spend each month. There are 9 months in the school year so I divided $270 by 9.
However, you expect to spend $45.78 each month. You can’t do that. You don’t have enough money.
However, you expect to spend $45.78 each month. You can’t do that. You don’t have enough money.
I have some suggestions that might help you balance your budget. That means your expenses equal I have some suggestions that might help you balance your budget. That means your expenses equal the amount of money you have to spend. To do that, you have to reduce what you spend and/or the amount of money you have to spend. To do that, you have to reduce what you spend and/or increase your income. You can reduce the amount you want each month for clothes. Your old jeans increase your income. You can reduce the amount you want each month for clothes. Your old jeans still fit, so you can get by with one pair of Frumpy and Fitch jeans. You’ll only need $5 each month still fit, so you can get by with one pair of Frumpy and Fitch jeans. You’ll only need $5 each month for clothes. Also, you can make gifts instead of buying gifts. You’ll only need $2 each month for for clothes. Also, you can make gifts instead of buying gifts. You’ll only need $2 each month for gifts. You could also reduce the amount you spend at the water park if you bring some snacks from gifts. You could also reduce the amount you spend at the water park if you bring some snacks from home and play fewer video games. You’ll only need $7 each month.
home and play fewer video games. You’ll only need $7 each month.
Finally, I think you better plan on shoveling snow and babysitting each month. Maybe you could be a Finally, I think you better plan on shoveling snow and babysitting each month. Maybe you could be a soccer referee for the little kids’
soccer referee for the little kids’soccer program at the community center, too. That will give yousoccer program at the community center, too. That will give you some additional income. I bet you can earn about $15 a month. You could also ask your grandparents some additional income. I bet you can earn about $15 a month. You could also ask your grandparents for money for your birthday. That would help. You might end up with extra spending money for the for money for your birthday. That would help. You might end up with extra spending money for the trip!
trip!