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
$2000 p er Car
month
Rent $600.00
Payment $240.00
Gas $80.00
Insurance $40.00
Food $320.00
Clothing $100.00
Medical/Dental $100.00
Recreation $100.00
Cell Phone $40.00
Cable $20.00
Electricity $40.00
Savings $80.00
Credit Cards $60.00
Hair care $80.00
Toiletries $60.00
Make up $20.00
Life Insurance $20.00
TOTAL: $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