1.1 Budgeting

• Economie
• Secondary Education

What are fixed expenses?

Chapter 1.1

Budgeting , Pages 574-575

Objectives

Difference between fixed and flexible expenses.

Discuss the ways expenses might be brought in line with the budget.

 Prepare a budget for a scenario.

Expenses

When you have a record of your expenses, put them into categories, such as transportation, food, clothing, savings, and entertainment.

Activity 1: Individually
From the list of expenses given below categorize them as fixed or flexible expenses.
Car loan ,House rent, electricity, lunch out, sweater, movie

How can you maintain your expenses and not exceed the limit?

Why do you need to control your expenses?

In pairs :Look at the example of a budget given on page 575 .How can you set up your spending plan by controlling the expenses?

Calculate the totals for each
category and see what percentage each is
of the total budget.

Write things you knew before.
Write things you wish to know.
Write things you learnt.

Planning a Budget

  Suppose you have a job that brings in $1,150 a month after taxes. You contribute $350 toward rent and utilities each month for an apartment you share with two other people. You put $100 each month into a savings account, and you spend about $50 per month for a cell phone. Of course, you also eat, wear clothes, and go out with friends. You want to buy a car that will cost $300 per month for payments and insurance. Can you afford it? Plan a budget to see if you can take on this new fixed expense.

Answer here for the above activity.

Make the given letters into a meaningful word.What does this mean?
lxibefle xpnsees

Write the important things you learnt?