1. Creating a Budget

2. 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?

3. Various Business Items
Journals – What’s the deal?

4. What is a budget?
Why do we budget?

5. 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?

6. 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

7. 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

8. 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

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