1. Learning How to Save Money
Chapter 4 Budgeting
Learning How to Save Money

2. How much Money do You Need to Live ??
Weekly? 300, 700, 600
Monthly? 3,000, 5,000
Annually? 15,000, 40,000 , 50, 000

3. How do People Spend Money??
Get with a partner/group
Brain storm a list of all monthly expenses one would have to pay
Share your list with another group, discuss/add additional expenses
Create a unified list for class

4. Monthly Expense List Fixed Expenses Cost Utilities Other Totals 1010
Rent/Morgage
500
Water/Sewag/Garb
100
Cell Phone 60
Car
250
Electric 75
Grocery
120
Insurance
Heating 50
Car/home repair
Home Insurance 80
Phone/Tv/ Internet
Entertainment
150
School Loan
Savings
Totals
1010
345
430

5. After some consideration, how much Money do You Need to Live ??
Weekly?
Monthly?
Annually?

6. 4-1 Average Monthly Expenses
A budget, or plan to balance income and expenses can help plan and meet expenses.
To prepare a budget a record of expenditures, amounts of money paid out, over time.
In order to decide how and where spending should occur, average monthly expenses must be determined.

7. Find the Average Monthly Expenditures
Average Monthly Income = Sum monthly expenses
# of months
January
February
March
Average Expense
Housing
$251
$300
$178
Food
$98
$215
$164
Transportation
$345
$230
$245
Total

8. Assignment Time!!!
Worksheet 4-1 Practice

9. 4-2 Fixed and Variable Expenses
Expenses that remain the same from month to month are Fixed Expenses.
Mortgage/Rent
Car
Insurances
Expenses that change from month to month are Variable Expenses.
Recreation
Clothing
Groceries

10. Keeping track of Expenditures can help summarize expenditures
Budget Sheet for: Benjamin Button
Total Monthly Expenses
Monthly Variable Expenses
Monthly Fixed Expenses
Groceries
Mortgage/Rent
Clothes
Car
Medicines
Home Insurance
Dinner
Life Insurance
Video rental/entertainment
Auto Insurance
Home Repair
Taxes
Car Repair
***Savings
Total

11. Understanding Payments
If auto insurance is paid quarterly in the amount of $250, how much should be budgeted per month?
How much money is spent on Auto insurance for annually.

12. Assignment Time!!!
Worksheet 4-2 Practice

13. 4-3 Making a Budget
Once you have listed your expenditures on a budget sheet, you are ready to make a budget.
A budget will help you decided if you can afford optional purchases. It will help you to plan for vacations and major expenses such as automobiles, new appliances, ect.
It can also aid in decided how to adjust your spending to save or just to have money.

14. How to Make a Budget??
1- Determine the percentages of expenditures based on the net monthly income
Net Monthly Income – the amount earned (take home) in average month
2- Calculate the number of degrees (round to the nearest degree)
Degrees will be measured and displayed on circle graph (360 degrees make up a circle)

15. Finding Percent of Budget Items
** Bases on a net monthly income of $ 1,053
Item
Average
Expense
Percent of Income
Housing
$250
250 / 1,053 x 100 =
Food
$159
159 / 1,053 x 100 =
Transportation
$180
180 / 1,053 x 100 =
Savings
$50
50 / 1,053 x 100 =
Finding Percent of Budget Items
Percent of Budget item =
Budget item / net monthly income x 100

16. Finding Degrees of Budget Items
Step 1: Find the Degrees
Item
Percent of Income
Degree in Circle
Budget Item Degrees
Housing
24%
360
Food
15%
Transportation
17%
Savings 5%
Finding Degrees of Budget Items
Pr. 4-3
Degrees of Budget item =
Percent of Item x Degrees in Circle ( 360)

17. Step 2: Draw circle and make angles at budget item degrees

18. Working with a Protractor and Compass to make Budget
1. Line up center with center of Circle
2. Draw line from center to circle
3. Line up on line and select proper scale
4. Find correct angle and draw ray
4. Label section of circle
Worksheet on drawing/measuring angles

20. Assignment Time!!!
4-3 Practice