1. Problem #9 Test 2 Solution

2. Record Keeping and Budgeting Chapter Three Objective: Compute the average monthly expenditure

3. Average Monthly Expenses Should individuals keep track of their financial records? Key Terms: Budget- plan for using money in a way that best meets your needs and wants Expenditures- items you spend money on Budget Sheet- tool used to keep track of your spending habits

4. Making a budget: Income = Expenses What about savings and Investing?

5. Budget project Keeping track of the little things

6. Net Worth How much am I worth? Why is this important? What do you want to see happen to your net worth over your lifetime?

7. What about variable expenses? Monthly Electric Bills: 121.47, 153.56, 125.88, 201.00 What is the average bill over the four month period? 150.48 Insurance bill that comes only twice a year 400 every six months Average monthly expense? 800 / 12 =

8. Concept Check page 158 Problems 1, 2,3 197.22 293.31 124.04

9. Budgeting Project Description: Keep a log of your day to day expenses for a period of 30 days. October 1 thru October 31 Project: 30 points Includes analysis and pie chart at the end of the month.

10. Closure How does the word “average” relate to budgeting concepts? When do you average your monthly costs instead of real costs?

11. Homework page 159 Problems 11-14