1. Creating a Household Budget Julia Menendez, Janner Mateo Pelaez

2. Background Budget: A measure of income and expenditures for a set period of time (Class Notes). Income: Money received (Class Notes). Expense: The cost required for money spent on something (Class notes).

3. Background 3 Types of Expenses: ●Fixed Expenses: Cost the same amount every time; usually on set schedule ex: Rent, Mortgage, Phone Bill ● Variable Expenses: Amount fluctuates, control over the cost, still usually on a set schedule ex: Groceries, Electric Bill, Water Bill ● Periodic/Occasional Expenses: Not paid on a set schedule, usually as needed; can either be fixed or variable ex: Car Repairs, Doctor, Vacation

4. Why is this important? Creating a household budget is important because you have to make sure you have enough money for all of your expenses; plus extra money. You need to have enough money for fixed expenses which are paid regularly and are always the same amount. You need to have money for variable expenses which are payments whose cost can change, but are paid regularly also. Most importantly you need extra money for periodic expenses which can sometimes comes as a surprise.

5. Wrong Sammie has paid all of her bills, and done all she had to do. But one day on one of her strolls through her parking lot in her Jeep, she crashed into a parked car. Sammie did not have enough money to pay for the damages on her car, and the car she crashed into. Now Sammie has to borrow money from the bank in order to fix her car and the other car. Sammie did create a household budget, she has just enough money to pay all she had to pay, but she did not think about the periodic expenses. Now Sammie is in debt.

7. Wrong Josh Zenil a student at Harvard University that does boxing/soccer/plays guitar/everything ever invented has created a budget to pay all of his bills, all of his student loans and has just the right amount of money to pay his fixed and variable expenses. But one day while performing for his Freshman class at Harvard his guitar strings snapped. Unfortunately for Josh he had no extra money to fix his guitar, which he gets paid for, which is where all his income comes from. Josh is now broke, and no longer attends Harvard, and he's homeless with a stringless guitar. Next time plan ahead.

9. Wrong Alejandro owns a huge mansion which the mortgage for is over the top expensive. Luckily for Alejandro he is a Doctor and can afford to pay his mortgage every month. At the end of the week Alejandro puts together all he has made and puts it aside for mortgage at the end of the month. Alejandro is feeling super proud he can pay his first month at his huge mansion. Unfortunately for Alejandro he totally forgot about his phone bill, Netflix, water bill, electric bill,and every other bill he has to pay. If Alejandro made a Household budget and kept track of all the payments he had to make he would have not lost his huge mansion. But the mansion is gone now, and Alejandro has to move back in with his mom. #BACHATA

11. Right Valentina goes grocery shopping with the money she has set aside specifically for the groceries. Valentina a very smart girl attending East High and dating Troy Bolton, has made a household budget. She keeps up with all the bills she needs to pay, and has knowledge of all of her expenses. She even sets aside extra money for all of her periodic/occasional expenses! Valentina lives a good successful life. Good job Tina.

13. Right Gerardo a wrestler, one day gets injured wrestling for Central Falls High School. Fortunately for Gerardo, he has extra money from knowing that one day he might run into some trouble. Well today is the day, Gerardo got totally beat up and he hurt his rib cage. While being transported to the hospital Gerardo was completely calm knowing that he has enough money to pay for all of his bills, plus extra money to pay for his injury. Great thinking Gerardo, you’re going far in life.

15. Right Gianny Perez, a full time student at Brown University. Also a professional Pokemon card collector, has made up a budget to keep up with her phone pill, student loans, and on-campus expenses. Gianny has also set aside extra money to keep collecting her Pokemon cards. Luckily for Gianny, since she has made a budget and managed all of her money she is able to keep collecting. Way to go Gianny.

17. Tie Back Creating a household budget can keep you on the right track of managing your money responsibly. You have to make sure you will have enough money to cover all of your expenses, whether they are fixed, variable, or periodic expenses. You always want to make sure you will have enough money for everything. Manage your money well and you will do great.