1. SECTION
3-2
Preparing a Budget Sheet pp

2. Key Words to Know living expenses (p. 149)
Routine expenses, such as food, utilities, and clothing, that vary from month to month.
fixed expenses (p. 149)
Regular expenses that do not vary from month to month, such as rent and car payment.

3. Key Words to Know annual expenses (p. 149)
Expenses which occur once a year, such as insurance premiums and real estate taxes.

4. Formula Total Monthly Monthly Monthly Share
Monthly = Living Fixed of Annual
Expenses Expenses Expenses Expenses

5. Example 1
The Millers use records of their past expenditures to complete the budget sheet shown on page 150 in your textbook.
What is the total of their monthly expenses?

6. Budget Sheet – Outlines your total monthly expenses.
Living expenses- Vary from month to month
Food
Utility bills
Entertainment
Transportation
personal spending
Fixed expenses (don’t vary)
Rent/mortgage
Car payment
Savings*
Annual expenses (most are paid in monthly installment
Car registration
Insurance
Taxes

7. Example 1 Answer Step: Find the total monthly expenses.
Monthly Monthly Monthly Share
Living Fixed of Annual
Expenses Expenses Expenses
$ $ $219.29
= $1,702.79

8. Example 2
The Browns have monthly living expenses of $875.00, monthly fixed expenses of $1,025.80, and annual expenses of $4,
After calculating the Browns’ monthly share of annual expenses, find their total monthly expenses.

9. Example 2 Answer: Step 1 Find the monthly share of annual expenses.
           12
$4,974 = $414.50
   

10. Example 2 Answer: Step 2 Add up the expenses.
Monthly      Monthly         Monthly Share
Living    +    Fixed       +    of Annual
Expenses    Expenses       Expenses
$875.00 + $1, $ = $2,315.30

11. Pg : 1-18
END OF SECTION
3-2
Preparing a Budget Sheet