Presentation on theme: "Budget for Fun Purchasing concert tickets, buying electronics, and dining out can become expensive. Why should you budget for entertainment?"— Presentation transcript:
Budget for Fun Purchasing concert tickets, buying electronics, and dining out can become expensive. Why should you budget for entertainment?
Lesson Objective Compute the average monthly expenditure. Content Vocabulary recordkeeping expenditures recordkeeping Keeping track of items you spend money on during a period of time, to help you manage your money. budget sheet living expenses budget expenditures Items you spend money on. budget sheet A record of monthly expenses. living expenses Routine expenses, including amounts for food, utility bills, and pocket expenses. budget A plan for using money in a way that meets your wants and needs.
Lesson Objective Use records of past expenditures to prepare a monthly budget sheet. Content Vocabulary fixed expenses annual expenses fixed expenses Regular expenses which do not vary from one month to the next, such as rent. annual expenses Expenses which occur only once a year; such as real estate taxes.
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? Example 1
Step: Find the total monthly expenses. Monthly MonthlyMonthly Share Living + Fixed + of Annual Expenses Expenses Expenses $505.00 + $978.50 + $219.29 = $1,702.79 Example 1 Answer
The Browns have monthly living expenses of $875.00, monthly fixed expenses of $1,025.80, and annual expenses of $4,974.00. After calculating the Browns monthly share of annual expenses, find their total monthly expenses. Example 2
Find the monthly share of annual expenses. Annual Expenses 12 $4,974 = $414.50 12 Example 2 Answer: Step 1
Add up the expenses. Monthly Monthly Monthly Share Living + Fixed + of Annual Expenses Expenses Expenses $875.00 + $1,025.80 + $414.50 = $2,315.30 Example 2 Answer: Step 2
Find the total monthly expenses. Living: $846 Fixed: $1,560 Annual expenses: $4,644 Practice 1