Creating a Budget

Journal 4.1 OBJECTIVE Students will be able to… Know the different aspects of a successful budget Recognize the consequences of not following a budget AGENDA Journal Terms Budget Analysis Activities What is the point of a budget, and how should I go about making one?

Various Business Items Journals – What’s the deal?

What is a budget? Why do we budget?

Key Terms Budget- A plan for how you will spend your money Cash Flow- The amount of money coming into and leaving your bank account Why should we keep track of this?

Fixed v. Variable Expenses Variable Expenses- Costs that you pay occasionally Examples? Fixed Expenses- Costs you can count on having to pay every month Fill out the appropriate sections on your note sheet to brainstorm common expenses

Analyzing Spending Habits Individually analyze Nate’s spending habits and answer the questions (Scenario 1) With a partner analyze Maria’s budget and answer those questions (Scenario 2) Individually answer the comparison question

Creating Your Own (Fake) Budget The percentages on the worksheet are rough suggestions of how to break up your income for a budget. Use the scenario instructions and those percentages to create an appropriate monthly budget. You’ll have to decide which categories are variable and which are fixed costs

Creating Your Own (Real) Budget For homework, go home and calculate the following: Monthly expected income Fixed expenses Variable expenses