36 Chapter 2 Making Smart Decisions
Keep in mind that financial goals change over time. Today your goals may
include saving money for a smartphone, a car, travel, or college. However, as
you move on to college, work, and perhaps marriage and parenthood, your
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Estimate and Total Your Income
Determine your budget period—weekly, biweekly, or monthly. This will
depend on when you receive most of your income. Income is any form of
money received, such as an allowance, a paycheck, gifts, and gains from
an investment. If you receive money weekly, it makes sense to budget on a
weekly basis. If you receive a regular monthly paycheck and pay monthly
bills, it may be easier to work with monthly figures.
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as the one in Figure 2-3, write your best estimate of how much money you
normally receive from each source of income. Total the estimates and enter
the amount at the bottom of the sheet.
Estimate and Total Your Expenses
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period. An expense is the cost of goods and services you buy. Generally, your
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A fixed expense is a set amount that must be paid each budget period.
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must be paid when due. Therefore, it is important to list them first.
Estimating Income
Week or Month of _______________
Income Sources Estimated Actual
Jobs
Babysitting $ 25 $ ______
Yard work 40 ______
After-school job 200 ______
Allowance 40 ______
Gifts 10 ______
Total Income $ 315 $ ______
Goodheart-Willcox Publisher
Figure 2-3 Use a form similar to this one to estimate expected income.
Review your estimates and fill in with actual figures to stay up-to-date on the
amount you have to spend and save.