Friday, April 17th
Sub Plans for Mr. Whalen
Part 1: Budgeting
Our next stop on the ride aboard the educational locomotive is to Money Management and Banking. We have progressed from learning about working and earning, to actually managing the money that we have worked so hard for. That all starts with creating a budget.
A budget is an estimated financial plan for income and expenses for a set time period.
Creating a budget is paramount to your ability to plan your spending appropriately while also accounting for saving and investing. Their are four steps in the budget process that must be completed IN ORDER:
1. CALCULATE MONTHLY INCOME: The first step is creating a budget is to know much money you have coming in. Start by determining your income after taxes, sometimes referred to your disposable income.
2. PAY YOURSELF FIRST: Saving must be a priority!!! Figure out how much you want to save before looking at your expenses. Many people wait until all of their expenses are accounted for and THEN look to save, only to find that they have no money left to save.
3. CALCULATE EXPENSES: The most common mistake people make when budgeting is they plan their budget around their expenses, which helps explains why the average American spends $1.25 for every $1.00 they earn.
4. BALANCE YOUR BUDGET: Your goal is for your expenses(outflow) to be less than your income(inflow). Any money that you have remaining is referred to as your discretionary income, to be used at your discretion. If your expenses and savings exceed your income, revisit your budget to cut back on expenses.
Go to Google Classroom for the "Budget Activity" assignment. You may work with partners, but submit via Google Classroom individually.
Part 2: Budget Practice
Another way to view a budget is a guide to your spending decisions. A budget tells us what we can't afford, but it doesn't keep us from buying it.
You and your partner have been given $1,000 to plan a four-day end of school year trip(June 11th-14th). You can go anywhere or do anything you want, as long as:
- you stay within your budget.
- you leave no earlier than midnight on the 11th.
- you return no later than 11:59 pm on the 14th.
Click on the link below to access the slide deck. Make a copy, share with your partner for collaboration and submit via Google Classroom(Vacation on a Budget).