Business Math 2.6 Budgets

Start Up Think of an organization that you participate. What types of income and expenses are typical of that club? What are the actual or estimated annual amounts for each income and payment type? Make a list of the types and amounts of the income and expenses. Math Builder page 69

Expense Percentages It is helpful to examine and analyze your expenses and income from the previous year. You can turn expenses into percentages of income to help plan for future spending Example 1 Page 70 Check for understanding A and B

Budgeting Budgets are the future spending plan One way to budget is to use the previous year’s spending to predict the current year’s expenses. Example 2 Check for understanding C and D

Wrap up Look at the club spending. Assume a 5% growth in the club’s income. Prepare a budget for the next school year. Do not exceed 105% of the previous year’s total