1. SECTION 3-1 pp
Average Monthly Expenditures

2. Section Objective
Compute:
Average monthly expenditure

3. Key Words to Know recordkeeping (p. 146)
Keeping track of monthly expenses by recording them in a budget sheet.
expenditures (p. 146)
Items you spend money on.

4. Key Words to Know budget sheet (p. 146)
A record of monthly expenditures.

5. Formula Average Monthly Expenditure = Sum of Monthly Expenditures
Number of Months

6. A Rock Star’s Lyrical Leverage p. 146
What’s the importance of Classified’s keeping a budget?

7. Example 1
Sue and Bob Miller keep records of their expenditures. They want to know how much they spend each month (on the average). Below are their records for three months.
What is their average monthly expenditure?

8. Figure 3.1

9. Figure 3.1 (cont.)

10. Example 1 Answer Step: Compute the average monthly expenditure.
A. Find the sum of monthly expenditures.
$1, $1, $1, = $4,070.43
B. Divide the sum by the number of months.
Sum of Monthly Expenditures ÷ Number of Months
$4, ÷ 3 = $1,356.81

11. Example 2
Use the Millers’ records of monthly expenditures to find the average monthly amount spent for the electric bill?

12. Example 2 Answer Step: Compute the average monthly expenditure.
A. Find the sum of monthly expenditures.
$ $ $51.42 = $196.45
B. Divide the sum by the number of months.
Sum of Monthly Expenditures ÷ Number of Months
$ ÷ 3 = $65.48

13. Practice 1
Amy and Todd Irvings’ monthly expenses for June, July, and August are as follows: June, $3,260; July, $3,537; and August, $3,430.
Find the average monthly expenditure for the Irvings.

14. Practice 1 Answer
$3,409

15. Practice 2
The Benson family has grocery bills in the months of April through July for the following amounts: $90.85; $106.24; $79.87; and $
What is their average monthly expense for groceries?

16. Practice 2 Answer
$94.53

17. END OF SECTION 3-1
Average Monthly Expenditures