Section 1
1. Section 1
1.20. Explore 4
Section 1: Personal Budgets
The estimates for income and expenses you have just calculated are in the following chart. This is a possible monthly budget for Marcel to follow.
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Marcel’s Monthly Budget |
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Income |
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Expenses |
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|
Regular |
$2210 |
|
Rent |
$600 |
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Variable |
$200 |
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Food |
$320 |
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|
|
|
Vehicle |
$390 |
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|
|
|
Insurance |
$200 |
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|
|
|
Clothing |
$190 |
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|
|
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Entertainment |
$260 |
|
|
|
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Other |
$320 |
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|
|
|
Savings |
$130 |
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|
|
|
|
|
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Totals |
$2410 |
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|
$2410 |
Marcel will be able to put $130 per month into his savings account if he sticks to this budget.
Self-Check 1
Try these questions based on Marcel’s budget.
- What percentage of his estimated income would Marcel put into savings? Round to the nearest tenth of one percent. Answer
- Many financial analysts argue that you should pay yourself first by saving 10% of your income. If Marcel were to follow that advice, how much would he put into savings? Round to the nearest $10. Answer
- Suggest ways for Marcel to modify his budget to save 10% of his income. Answer
For more practice in creating a budget, turn to pages 315 to 317 of MathWorks 11 and work through “Example 1.”
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Tips for creating a conservative budget include the following:
- Review previous income and expenses.
- Group expenses into suitable budget categories.
- Underestimate income and overestimate expenses.
- Set goals.
- Modify the budget as required.
Once a budget is created, stick to this guide to meet your goals.
Check your understanding of the lesson’s objectives. Check your answers.
Self-Check 2
1. Do question 1 from “Build Your Skills” on page 321 of MathWorks11. Answer
2. Do question 2 from “Build Your Skills” on page 321 of MathWorks11. Answer
3. Do question 4 from “Build Your Skills” on page 322 of MathWorks11. Answer
It is now time to add new math terms to Mathematics 20-3: Glossary Terms.
In this lesson the new terms you will add are
- conservative budget
- surplus
- deficit