1. Warm-Up--What Do You Know About Budgets? Use a Word table to create a KWL Chart (or copy and paste one from an earlier activity). What do you know? What do you want to know? On Friday reflect what you have learned.

2. Objectives Identify sources of income Identify expenses Distinguish between fixed and variable expenses Develop a personal budget Use correct formulas in Excel

3. Hook How would you like $500 to spend on Prom? Well, if you saved $20 per week between now and Prom, you would have it. If you need more, them save a little more. Budgeting will help you do just this.

4. What Expenses Do I Have? Expenses ClothesCarEntertainmentPhoneFood

5. Budgeting Your Financial Income

6. Calculate Take-Home Pay What would you do with a budget of $5,000 per month? If your gross salary is $5,000, would your take-home pay be the same? Justify your answer?

7. Know These Terms Budget Earned Income Unearned Income Fixed Expenses Variable Expenses

8. Definitions Earned income – wages, salaries, tips Unearned income – child support, interest income, gifts, allowances, prizes Budget – a planning tool that can be used to help individuals and families manage their money.

9. Expenses Money paid out of your monthly income –Fixed – the same every month (car payment) –Variable –may vary every month (clothing) Why Budget?

10. Why Budget Financial planning helps you use your money to get the most out of life. Financial planning helps be prepared for emergencies. Financial planning helps you save for special items.

11. Monthly Salary Calculation Payment IntervalMultiply ByDivide By each week5212 every 2 weeks2612 twice a month2412 every 3 weeks17.3412 *Include other income such as interest or other.

12. Paid $1600 bimonthly 1600 X 24 = 38,400/12 = 3200

13. Establish Estimates for Your Monthly Expenses

14. Category% Housing28.3 Transportation23.9 Food10.8 Personal insurance and pensions9.1 Personal taxes5.7 Entertainment5.2 Clothing and services4.3 Health care3.9 Miscellaneous expenses2.3 Education2.1 Personal care products and services1.0 Cash Contributions.6 Reading.5 Savings2.3 Total100. Typical Budget Percentages

15. Income 3000 Savings Interest Earned 50 Total Income 3050 Fixed Expenses Housing 500 Telephone 150 Transportation 500 Credit/Student Loan 400 Savings 100 Total Fixed Expenses 1650 Variable Expenses Clothing/Personal Care 250 Food 400 Household Supplies 100 Medicine/Health 200 Insurance 300 Entertainment 150 Total Variable Expenses 1400 Comparison Total Cash Available 3050 Less Total Expenses 3050 Cash Balance 0 Sony Cruz Budget

16. What other expenses might you have that are not on Sony’s budget?

17. Assignment 1 – Create a personal budget in Excel based on your current financial status. 2 – Create a personal budget in Excel based on the salary for a single person for a profession that you are exploring 3 – Create a family budget in Excel 4 – Create a chart for each spreadsheet

18. Website for Personal Budget http://www.personalbudgeting.com/sample /sample.htmlhttp://www.personalbudgeting.com/sample /sample.html

19. http://www.salary.com/home/layoutscripts/homl_display.asp

20. Begin the Assignments Open Excel Create Sample problem Make a chart of your income (column) Make a chart of your expenses. (pie)